ROAS calculator
Return on ad spend, the break-even ROAS your margin allows, and what every lead, booked call and client really costs you.
ROAS
Enter your numbers
Break-even ROAS
Add your gross margin to see break-even ROAS.
Gross profit after ads
Enter your numbers
Cost per result
Add ad spend and any funnel count to see what each result costs.
How to calculate ROAS and cost per lead
ROAS tells you how much revenue each ad dollar brought back. Break-even ROAS tells you the line it has to clear before the ads make money. Cost per result tells you what each step of the funnel costs to fill.
ROAS
Revenue from ads ÷ Ad spend
Break-even ROAS
1 ÷ Gross margin
Cost per lead
Ad spend ÷ Leads
Cost per client (CAC)
Ad spend ÷ New clients
Write the margin as a decimal in the break-even formula: a 40% margin is 0.4, so break-even ROAS is 1 ÷ 0.4 = 2.5.
A worked example
Hypothetical example. Made-up numbers, not client data.
- 1$5,000 of Meta ads brings in $15,000 of revenue: 15,000 ÷ 5,000 = 3x ROAS.
- 2The offer keeps 40% as gross margin: 1 ÷ 0.4 = 2.5x break-even ROAS. At 3x the campaign clears it.
- 3Gross profit after ads: $15,000 × 0.4 - $5,000 = $1,000.
- 4The same $5,000 bought 125 leads, 25 booked calls, 18 shows and 5 clients: $40 per lead, $200 per booked call, $278 per show, $1,000 per client.
The $40 lead looks cheap. The $1,000 client is the number that decides whether the campaign can scale.
What a good ROAS looks like
A good ROAS is one above your break-even, with room left for overheads and the profit you want. A thin-margin offer needs a high ROAS just to stand still. A high-margin offer can scale on a much lower one.
Judge cost per lead by what comes after it. A cheap lead that never books is expensive, and a pricier lead that shows up and closes is cheap. For high-ticket offers, cost per booked call and cost per client are the numbers to manage.
Measure over a window long enough to include the sales your funnel closes later, not only what came in on the day of the click.
ROAS and cost per lead questions
Paying too much per client?
We build the funnel between the ad and the close: offer, page, booking, follow-up and tracking. Apply and we will tell you if we can lower it.