Free calculator
Put in what you spent on ads and what came back. The calculator shows your ROAS, your cost per lead and per customer, and, if you add your gross margin, the ROAS you need just to break even and the profit you made after ad spend. It runs in your browser and nothing is stored.
In short
ROAS (return on ad spend) is the revenue the ads brought in divided by what you spent on them. If you spent 50,000 and the ads brought in 160,000, your ROAS is 3.2x, or 320%. The numbers are an example; use your own.
Get your numbers right
ROAS tells you how much revenue each unit of ad spend brought back. It says nothing about what it cost you to deliver that revenue. A 4x ROAS on a product with a 20% margin loses money: you keep 80 of every 400 earned, and the ad cost 100.
That is why this calculator asks for gross margin. Break-even ROAS is 1 divided by your margin. Below it, the ads cost more than they earn you. Above it, they make a profit before your other costs such as rent, staff and our fee.
Cost per lead is what you pay for an enquiry. Cost per customer is what you pay for a sale. A cheap lead that never buys is worth less than an expensive one that does, so look at both and at the lead to customer rate between them.
If your cost per lead looks fine but your cost per customer is high, the problem is usually after the click: slow replies, a weak follow-up or leads that were never a good fit. Fixing that costs far less than buying more clicks.
Count only the revenue you can trace back to the ads: sales from leads the ads produced, in the same period you are measuring. Include a sale that closes weeks later if you can link it to the lead. Leave out repeat customers who found you another way.
For a business that sells over the phone or WhatsApp, this means tagging where each lead came from and noting it when the sale closes. Without that, any ROAS figure is a guess, including one from a platform dashboard.
Do not judge a campaign on a few days of data. Do not compare ROAS across businesses with different margins. And do not use a figure for margin that ignores the cost of delivering the work. Use your own number, and be honest about it.
The currency selector only changes the symbol. The calculator does not convert between currencies, so enter spend and revenue in the same one.
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Divide 1 by your gross margin. With a 50% margin the ads break even at 2x; with a 25% margin they need 4x. Anything above that leaves profit before your running costs, and anything below loses money however busy the ads look.
ROAS compares revenue with ad spend only. ROI compares profit with total cost. A campaign can have a strong ROAS and a poor ROI if your margin is thin or your other costs are high.
Divide 1 by your gross margin as a decimal. A 40% margin gives 1 ÷ 0.4 = 2.5, so you need 2.5x just to cover the ad spend. Enter your margin above and the calculator does it for you.
A result needs the numbers it is built from. For example, cost per customer cannot be worked out with zero customers. Fill in the missing box and the result appears.
No. The sums run in your browser and nothing you type is sent to us or stored.
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ROAS
3.2x (320%)
Every ₹1 of ad spend brought back ₹3.20 of revenue.
Cost per lead
₹500
Cost per customer
₹4,167
Lead to customer rate
12%
Break-even ROAS
2.5x
1 ÷ gross margin
Profit after ad spend
₹14,000
Revenue × margin − ad spend
Above break-even: your ROAS of 3.2x is higher than the 2.5x you need at this margin.
Revenue must be what you can attribute to the ads. Margin is your own number, and ROAS ignores it: a high ROAS with a thin margin can still lose money.
