Freetool, no sign-up
ROAS calculator, with break-even ROAS.
Enter the revenue your ads brought in and what they cost to get your return on ad spend. Add your margin to see the break-even ROAS and what is left after ads.
- Free, no sign-up
- Works on any phone
- Nothing is stored
Updated
In short
What is ROAS?
ROAS means return on ad spend: the revenue your ads brought in, divided by what they cost. Spend 1,000 and make 4,000 and your ROAS is 4, or 400%. Break-even ROAS is the point where ads stop losing money: 1 divided by your profit margin. With a 40% margin you break even at 2.5.
A marketplace where brands hire real creators for ad videos, at a fixed price per video.
An ad network or an analytics tool. The calculator uses the numbers you type in.
The formulaReturn on ad spend
ROAS =revenue ÷ ad spend
- As a percentage
- revenue ÷ ad spend × 100
- Break-even ROAS
- 100 ÷ profit margin
A worked example
The numbers the calculator opens on.
- €4,000
- Revenue from ads
What the ads brought in.
- €1,000
- Ad spend
What the ads cost.
- 4x
- ROAS
4,000 ÷ 1,000 = 4
- 2.5x
- Break-even ROAS
At a 40% margin: 100 ÷ 40 = 2.5. Above it, the ads make money.
How to read it
How to calculate ROAS, and what to do with it.
Five steps from the number to a decision.
- 01
Use the formula
ROAS = revenue from ads ÷ ad spend. Multiply by 100 if you prefer it as a percentage.
- 02
Find your break-even
Break-even ROAS = 1 ÷ profit margin. Anything above it earns money; anything below it costs you.
- 03
Judge each ad
An account average hides the ad that pays for the others. Look at ROAS ad by ad, with CPA beside it.
- 04
Test more creative
The video is the part of an ad you fully control. When ROAS drops, new creative is the first thing to test: see UGC ads.
- 05
Count the cost of the creative
What you paid for the videos belongs in the sum. A fixed price per video makes that number known in advance.
Free tools
Five more free tools.
Each one opens on a worked example you can type over. Nothing you enter leaves your device.
FAQ
ROAS, answered.
What people ask about these numbers, and how Octoclip prices a video.
What is the ROAS formula?
ROAS = revenue from ads ÷ ad spend. Revenue of 4,000 on a spend of 1,000 is a ROAS of 4, or 400%.
What is a good ROAS?
One that is above your break-even ROAS. A business with a 50% margin breaks even at 2, one with a 25% margin at 4, so a good number for one is a loss for the other.
How do I calculate break-even ROAS?
Divide 1 by your profit margin before ad costs. A 40% margin gives 1 ÷ 0.40 = 2.5.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares profit with every cost, including the product, the creative and your team.
How can I improve my ROAS?
Brands usually test new creative, a different offer or a different audience, one at a time. Nobody can promise the result. Octoclip does not sell or guarantee downloads, installs or views. You pay a fixed price for each approved video.
How much does new ad creative cost?
Posting a job, reviewing applicants and sending offers are free. You set a fixed price per video and pay only when a creator accepts your offer. The full amount is shown before you send the offer.
Ready when you are
Get new creative to test.
See who wants to film your product before you pay anything.
Posting a job is free. You’re charged only when a creator accepts.
