ROAS calculator for ad budget and break-even.
Enter revenue target, margin and expected ROAS: you instantly see ad budget, break-even ROAS and what remains after ad spend. No email.
What ad budget do you need? Three numbers, one result.
The calculation uses only your inputs, in your browser. Nothing is stored and nothing is sent.
What ad budget does your revenue target need?
monthly ad budget for your revenue target
Range €6,000 to €10,000. Range: your ROAS a quarter higher to a quarter lower.
€7,500 monthly ad budget for your revenue target. Your break-even ROAS is 2.5. At your ROAS, around €4,500 of gross profit per month remains after ad spend.
A worked example based on your inputs, not a promise. The starting values are arbitrary, not benchmarks. Gross profit before fixed costs, returns and agency.
Discuss the resultWhat is ROAS, and when does it pay off? The formulas behind the calculator.
In short: ROAS is revenue from advertising divided by ad spend. Whether a ROAS is good depends on your margin: break-even ROAS is 1 divided by your gross margin. Only above it do you earn money from advertising, below it you lose money.
The three formulas
| What | Formula | Example with your numbers |
|---|---|---|
| ROAS | Revenue from advertising ÷ ad spend | €4,000 revenue ÷ €1,000 advertising = 4 |
| Break-even ROAS | 1 ÷ gross margin | 1 ÷ 40% = 2.5 |
| Ad budget | Revenue target ÷ expected ROAS | €30,000 ÷ 4 = €7,500 per month |
Gross profit after ad spend is revenue × gross margin minus ad budget. In the example: €30,000 × 40% = €12,000 margin, minus €7,500 advertising, leaves €4,500 before fixed costs, returns and agency.
Break-even ROAS by margin
| Gross margin | Break-even ROAS |
|---|---|
| 20% | 5.0 |
| 25% | 4.0 |
| 33% | 3.0 |
| 40% | 2.5 |
| 50% | 2.0 |
| 60% | 1.67 |
The table is pure arithmetic, not a benchmark. Returns, shipping and payment fees reduce your real margin, so deduct them before you use the calculator.
Three mistakes that flatter your ROAS
- Platform ROAS instead of blended ROAS: Meta and Google often both claim the same purchases. Divide total revenue by all ad spend and you see what actually arrives.
- Revenue instead of margin: A high ROAS on low-margin products can earn less than a lower ROAS on high-margin products.
- Counting brand searches: People who search for your name would often have bought without an ad. Separate brand and generic campaigns before you judge your ROAS.
How we measure online shops by blended ROAS is explained on our pages E-commerce marketing and E-commerce. More on how we work is in Performance marketing and on pricing models.
Where is your ROAS losing budget today? The findings arrive as a report by email.
We review campaigns, site and tracking and send you a detailed report by email covering every relevant point, usually within 5 working days. Free of charge and without a contract.
Step 1 of 6
A few questions about your setup, your contact details only at the end. You will receive the detailed report by email, usually within 5 working days.
Questions about the ROAS calculator.
How do I calculate ROAS?
ROAS (return on ad spend) is revenue from advertising divided by ad spend. If €1,000 of ad budget brings in €4,000 of revenue, the ROAS is 4. The ad.boutique calculator turns the formula around: your revenue target and expected ROAS give you the ad budget you need.
What is break-even ROAS?
Break-even ROAS is the ROAS at which your gross margin exactly covers your ad spend. It is 1 divided by the gross margin: 2.5 at a 40% margin, 4 at a 25% margin. If your ROAS is below it, every sale through advertising costs more than it earns in margin.
What is a good ROAS?
That depends on your margin, not on an industry figure. A ROAS of 3 is profitable at a 50% margin and a loss at a 25% margin. That is why the calculator works out your break-even ROAS first, and only above it do you earn money from advertising.
What is the difference between ROAS and blended ROAS?
A platform ROAS only counts what Meta or Google attribute to themselves, and channels often count the same purchases twice. Blended ROAS divides total revenue by all ad spend combined. ad.boutique measures e-commerce clients by blended ROAS because it shows what really arrives.
Are my numbers stored?
No. The calculator runs only in your browser, nothing is stored and nothing is sent to us. Only when you request an audit do we receive your email address and your website.
Can an agency in Vienna help me plan my ad budget?
Yes. ad.boutique in Vienna and Zurich plans ad budgets for online shops and lead generation clients in Austria, Germany and Switzerland, starting from break-even ROAS and the target metric. The free audit shows you where your account is losing budget today.