ROAS Calculator (FREE TOOL)

A ROAS is good when it beats your own break-even ROAS. Break-even ROAS is 1 divided by your contribution margin, so the same ROAS can be a profit for one store and a loss for another.

The median brand on Meta made 1.88x from August 2025 to July 2026, up from 1.86x a year earlier, across more than 40,000 brands that use Triple Whale. At that ROAS, a store loses money on its ads at any contribution margin under 53.2%, because 1 divided by 1.88 is 0.532.

Use the median for context, not as your target. Your target comes from your margin and the profit you want to keep, and the table below works it out.

ROAS, return on ad spend, is the revenue you earn for every $1 you spend on ads. A ROAS of 4x means $4 of revenue came back for each $1 of spend. People write the same number as 4:1, 4x or 400%.

That revenue comes before product cost, shipping, payment fees and your team. So a ROAS alone does not say whether the ads made money: read it against your own break-even ROAS.

The worked example is the one the calculator opens with: $2,000 of ad spend, $7,000 of revenue, a 40% contribution margin and a 10% profit target.

Break-even ROAS is the return on ad spend where your ads pay for themselves and nothing more: 1 divided by your contribution margin. Contribution margin is the share of revenue left after product cost, shipping, payment fees and returns, before ads.

Gross margin leaves out shipping and fees, so it makes break-even look lower than it is.

To work out your margin from your costs per order, use the break-even ROAS calculator.

There are two levers. Earn more revenue for every $1 of spend: a higher conversion rate, a bigger order, or buyers who come back, which lifetime value measures. Or spend fewer dollars for the same revenue, with tighter targeting and a lower cost per click.

The ad itself is the lever Selzee works on: it makes ads for your brand from ads already winning on Meta. For what to change first, see how to improve ROAS on Meta and TikTok.

• The formulas: ROAS = revenue ÷ ad spend; profit = revenue × contribution margin − ad spend; break-even ROAS = 1 ÷ margin; target ROAS = 1 ÷ (margin − target profit); ACoS = ad spend ÷ revenue.
• Every number on this page was worked out by hand first, then checked against the calculator's own code in 8 cases: 2 typical ones, 4 on a boundary (exactly on break-even, a target as large as the margin, a 100% margin and zero spend) and 2 hostile ones (text and negative numbers).
• Exactly on break-even counts as break-even, not a loss. Text, negative numbers and empty fields count as empty.
• The calculator leaves out fixed costs, such as rent and salaries, and repeat purchases.
• The 1.88x median is from Triple Whale's Meta ad benchmarks, read on 20 October 2026.
• Last checked: 20 October 2026.