Micro Tools
Advertisement

Target ROAS calculator

Enter price, cost and your target profit margin to find the ROAS you must beat for ads to pay off.

Inputs

Results update live as you type.

Target ROAS
-

Enter values to calculate.

Max ad spend / order
-
Min revenue per $1 ad
-
Formulas: max ad spend = price - cost - price x margin/100. Target ROAS = price / max ad spend.
Advertisement

Why you need a target before spending

A campaign at 3.0x ROAS looks great until you learn your margin needs 4.0x. The target ROAS turns your price, cost and margin goal into one number: beat it and every sale adds profit, miss it and ads quietly lose money.

Using max ad spend per order

The max ad spend per order is your CPA ceiling. If the target ROAS is 3.33x on a $50 product, you can spend at most $15 to acquire each order. Feed that number to your ad platform as a bid or budget cap.

Related tools

Invoice generatorInvoices with items, tax and discounts. Print or save as PDF. QR code generatorCustom QR codes. Download as PNG. Email signaturesPro email signatures, copy HTML.

Target ROAS Calc FAQs

How do you calculate target ROAS?
Target ROAS = selling price / (selling price - cost - target profit). With a $50 price, $20 cost and 20% target margin ($10), max ad spend is $20 and target ROAS is 2.50x.
What is break-even ROAS?
Set the target margin to 0%: target ROAS = price / (price - cost). That is 1 / your product margin, the ROAS where ads exactly pay for themselves.
Should target ROAS include shipping and fees?
Yes, for accuracy. Add per-order shipping, payment fees and packaging into the cost field so the target reflects the true margin per order.
Target ROAS vs actual ROAS?
Target is the goal you compute here; actual is what the ROAS calculator measures from real spend and revenue. Scale campaigns only when actual beats target consistently.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.
Advertisement