FREE TOOL · 5-LAYER ROAS DIAGNOSTIC
ROAS Calculator
Most calculators give you a number. This one tells you where in the funnel your ROAS is leaking.
TL;DR
Most ROAS calculators give you a number. They do not tell you what to do with it.
The short version:
- Layer 1: enter spend and revenue. Get your ROAS.
- Layer 2: enter your unit economics. See if you are actually profitable, not just hitting a number.
- Layer 3: enter your CTR and CR. See which stage of the funnel is leaking.
- Layer 4: enter your target profit. See what ROAS you need, or what AOV or CR lift would get you there faster.
- Layer 5: if the leak is real, the Quick Scan finds the specific reasons. Free, 48 hours.
$65M+ ad spend audited. D2C only.
What this tells you
Three things this calculator surfaces.
First, whether your ROAS is profitable, not just whether it is good. A 4x ROAS sounds great. On a 25% margin product with 10% returns, it is not. Layer 2 shows you the real number.
Second, where in the funnel your money is leaking. Creative, landing page, or unit economics. Each one is a different fix. Spending more on ads will not help if the leak is in the page. Layer 3 puts each stage on a 3-row map so you can see which one is dragging the number down.
Third, what it would take to hit your profit goal, and the cheapest way to get there. Most brands try to scale by spending more. Layer 4 shows you when fixing AOV or CR by a small amount is the cheaper move.
What it does not tell you
I want to be honest about what this tool can and cannot see.
It is directional, not precise. The benchmarks I use to flag a creative or page as leaking are based on patterns from $65M+ in audited spend. They are not your exact numbers. Real benchmarks come from auditing your actual account.
It assumes the numbers you entered are accurate. Garbage in, garbage out. If your COGS is off by 5 points or your return rate is a guess, the verdict shifts.
It cannot see your creative quality, your landing page UX, or your competitor positioning. It cannot tell you which specific ad is dragging the average down. It cannot tell you which specific page element is killing conversion.
For all of that, you need eyes on the actual account. That is what the Quick Scan is for. I documented a real example of these patterns in why ROAS drops in e-commerce and how to find the leak.
HOT TAKE
The 3 numbers most ROAS calculators get wrong
Most ROAS calculators stop at revenue divided by spend. That is the easy math. The hard math is the costs they leave out. Here are 3 line items that quietly destroy profitability.
1. Return rate
Most calculators ignore returns. They treat revenue as final. It is not. A 10% return rate on a 30% margin product nukes profitability. You paid for the COGS. You paid the shipping. You paid the ad. You get back partial inventory and a customer who probably does not buy again. Run the break-even ROAS calculator with returns set to zero, then with returns set to 10%. The break-even moves a lot.
2. Payment processing
Stripe, Shopify Payments, PayPal. They take 2.9% to 3.5% off the top of every order. Every order. Every time. At $50 AOV and 3% processing, that is $1.50 per order. At 1,000 orders a month, that is $1,500. If your monthly profit is $5,000, processing alone ate 30% of it. Your CFO sees this. Your calculator does not.
3. Shipping
Free shipping is not free. If you eat $8 per order to ship a $50 order, your real margin is gutted. Brands that survive free shipping have either high AOV, low pack-out cost, or a carrier deal that nobody else has. If that is not you, charge for shipping or build it into the price. Either move beats pretending the cost does not exist.
FAQ
Method
How accurate is this calculator?
It is directional, not precise. The math is right. The inputs are yours. If your AOV, COGS, and return rate are accurate, the output is accurate. If you guess the inputs, you get a guess.
Why does the calculator ask about return rate and processing fees?
Because they kill profit and most calculators ignore them. A 10% return rate on a 30% margin product can flip a profitable account into a losing one. Same with 3% payment processing. It adds up.
What is the difference between break-even ROAS and target ROAS?
Break-even is the point where you stop losing money. Target is the point where you hit your profit goal. Break-even keeps you alive. Target lets you grow.
Will this work for me
I am spending less than $5,000 a month on ads. Is this calculator useful for me?
Yes. The math is the same at any spend. The leak diagnostic is even more useful at small spend, because one bad creative or one slow page is a bigger share of your budget.
My ROAS looks great but I am not making money. Why?
Your true break-even is higher than you think. Returns, shipping, and processing eat the gap between revenue and profit. Run Layer 2 of the calculator. The verdict will show the real number.
Should I use this instead of getting an audit?
Use both. The calculator tells you which stage is leaking. The Free Quick Scan tells you the specific reasons inside that stage. If you want the full forensic plus implementation review, the Deep Dive is built for that.
You can run this math yourself.
The calculator above is honest about its limits.
If you do not have time to triangulate creative, landing page, and unit economics on your own account, that is what the Free Quick Scan is for. I will record a private video walking through your ads, creatives, and landing pages. You will have it in 48 hours. No account access needed.
Get Your Free Quick Scan →Written by Aditya
$65M+ in ad spend audited across Meta, Google, and Amazon. D2C only.