Fictional example: in March, a store spends $2,500 on ads and its campaigns are credited with $10,000 in sales. Its ROAS is 10,000 ÷ 2,500 = 4, or 400%. With a 40% gross margin, its break-even ROAS is 1 ÷ 0.40 = 2.5, and $4,000 - $2,500 = $1,500 of margin remains after ad spend.
Free ROAS calculator for Shopify
Calculate your return on ad spend from attributed revenue and ad spend, then compare it with the break-even ROAS set by your gross margin.
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Example and tips
- Only compare ROAS figures from the same source and attribution window: Meta and Google can each count the same order.
- Also track a blended ROAS, total revenue ÷ total ad spend: it does not depend on any attribution model.
- ROAS only counts sales inside the attribution window: later repeat orders are missing, so track customer lifetime value too.
Kanal
What is Kanal?
Kanal turns WhatsApp into a sales channel for Shopify stores: abandoned cart recovery, order updates, campaigns to your segments, an AI chatbot and a shared inbox, with revenue tracked per message.
+90%open rate5/5on the Shopify App StoreFrom €89per month
See WhatsApp for Shopify in detailAbandoned cart flowFincut · WhatsAppLive
- Checkout abandonedTech T-shirt · Black, M
- Wait 1 hourSmart delay, quiet hours respected
- WhatsApp reminderProduct photo · 2 buttons
- Customer replyAnswered by the AI agent
- Order recovered#1042 · Paid in Shopify
Recovered this month€12,445.20
Your Shopify store on WhatsApp in 15 minutes
Leave your email and store address: a Kanal expert shows you the WhatsApp flows that pay for your catalog, cart recovery, order updates and campaigns.
How it works
Calculate your return on ad spend from attributed revenue and ad spend, then compare it with the break-even ROAS set by your gross margin.
- 1
Pick a period and a source
Use a full week or month, and take attributed revenue and ad spend from the same source: Meta, Google Ads, Shopify or your analytics tool.
- 2
Enter your two amounts
Type the revenue attributed to your ads and the ad spend for the period. The calculator divides the first by the second.
- 3
Read your ROAS
The result shows as a multiple, for example 4 for $4 of revenue per $1 of ad spend, and as a percentage, the format Google Ads uses for target ROAS.
- 4
Add your gross margin
Tick the option and enter your gross margin: the calculator shows your break-even ROAS (1 ÷ margin) and the margin left after ad spend.
- 5
Go deeper on profitability
To work out your break-even ROAS from your selling price and product costs, move on to the break-even ROAS calculator.
Frequently asked questions
How do you calculate ROAS?
Divide the revenue attributed to your ads by the ad spend for the same period. Fictional example: $10,000 in attributed sales for $2,500 of ad spend gives a ROAS of 4, meaning $4 of revenue for every $1 of ad spend, or 400% as a percentage.
What is break-even ROAS?
It is the ROAS at which the gross margin on attributed sales covers your ad spend: break-even ROAS = 1 ÷ gross margin rate. Fictional example: with a 40% gross margin, you need a ROAS of 2.5. Below that, ads cost more than the margin they bring in. To work it out from your selling price and costs, use our break-even ROAS calculator.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend. ROI compares a net gain with an investment: (gain - cost) ÷ cost. A ROAS above 1 therefore does not guarantee a positive ROI, since revenue also has to pay for products, shipping and fees.
What is a good ROAS?
There is no universal good ROAS: the threshold depends on your margin. The same ROAS can be profitable for a high-margin store and lose money for a low-margin one. Compare your ROAS with your break-even ROAS, then with your own history, using the same source and attribution window.
How can I improve my ROAS?
Two levers raise attributed revenue for the same spend: average order value and the conversion rate of paid visits. Repeat purchases raise what each acquired customer brings in, even beyond the attribution window. On WhatsApp, Kanal, the WhatsApp marketing app for Shopify, follows up on abandoned carts and sends campaigns to your customers: sales that do not need a new paid click.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing is sent to a server or stored.