ROAS vs Profit Calculator

See the difference between revenue ROAS and profit ROAS. Find out if your ads are actually making money after costs.

Enter Your Numbers

Input your campaign data to compare ROAS metrics

$

Total revenue generated from your ad campaigns

$

Total spent on Facebook, Google, TikTok ads

$

Product cost, packaging, manufacturing

$

Shipping, transaction fees, fulfillment

ROAS Comparison

Revenue ROAS vs Profit ROAS

Revenue ROAS

0.00x

Revenue / Ad Spend

Profit ROAS

0.00x

Profit / Ad Spend

Reality Check

0.00x hidden cost

The gap between perceived and actual return

Net Profit from Ads

$0.00

Your ads are generating profit!

Break-even or marginal - optimize costs

Understanding ROAS vs Profit ROAS

Revenue ROAS

Revenue / Ad Spend = Revenue ROAS

What most ad platforms show you. Looks good but ignores all your costs. A 3x Revenue ROAS means $3 in sales for every $1 spent on ads.

Profit ROAS

(Revenue - All Costs) / Ad Spend

The real metric that matters. A 1.5x Profit ROAS means $1.50 in actual profit for every $1 spent on ads. This is what determines business sustainability.

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Frequently Asked Questions

What is the difference between Revenue ROAS and Profit ROAS?

Revenue ROAS measures total revenue generated per dollar of ad spend. Profit ROAS measures actual profit per dollar of ad spend after deducting COGS and other costs. Profit ROAS gives you the true picture of ad campaign profitability.

What is a good Profit ROAS?

A Profit ROAS above 1.0x means your ads are profitable. Most successful e-commerce businesses aim for a Profit ROAS of 1.5x or higher, meaning $1.50 in profit for every $1 spent on ads.

Why might my Revenue ROAS look good but I'm not making money?

Revenue ROAS ignores your costs. You could have a 3x Revenue ROAS but still lose money if your COGS and fees exceed 67% of revenue. Always calculate Profit ROAS to see true ad profitability.

How do I calculate Profit ROAS?

Profit ROAS = (Revenue - COGS - Other Costs - Ad Spend) / Ad Spend. This formula shows your actual profit return on every dollar spent on advertising.

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