> Index of Phersa pages for AI agents: https://phersa.com/llms.txt

# ROAS Calculator

Calculate ROAS, your return on ad spend, from the revenue your Instagram and Facebook ads brought in and what they cost. Add your margin to see the profit left after ads, or start from a target ROAS to see the revenue it needs. For creators and AI persona pages that sell with ads.

## How to use the ROAS Calculator

1. Pick ROAS from results. Type the revenue the ads brought in and what you spent on them.

2. Add your margin before ads. You get the profit left over and the ROAS you need to break even.

3. To plan ahead, pick Revenue for a target. Type the ROAS you aim for and your budget to see the revenue and sales it takes.

## How to calculate ROAS

ROAS = revenue from the ads ÷ ad spend. It tells you how much came back for each unit of money you put into ads.

**Worked example, made-up numbers:** you spend $250 on ads and they bring $900 in sales. $900 ÷ $250 = 3.6, so the ROAS is 3.6×. As a percent it is 360%: the same ratio × 100.

In Meta Ads Manager, purchase ROAS divides the purchase value credited to your ads by the amount spent. Those purchases come from the tools you connect to Meta, like the pixel on your store. A sale your setup doesn’t report is missing from the column.

## ROAS counts revenue, not profit

A $30 sale doesn’t leave you $30. The product, delivery and payment fees take their share first. That is why the calculator asks for your margin: the share of revenue left after the cost of each sale, before ads.

- **Profit after ads** = revenue × margin − ad spend.
- **Break-even ROAS** = 1 ÷ margin. Below it, the ads cost more than the sales leave you.

**Same made-up example:** $900 in sales at a 70% margin leaves $630 before ads. Take away the $250 of ads and $380 is left. Break-even ROAS at 70% is 1 ÷ 0.7 = 1.43×, so 3.6× is above it. At a 25% margin, the same $900 leaves $225. That is less than the $250 spent, and break-even ROAS is 4×.

To work out your margin from price, fees and delivery cost, use the [break-even ROAS calculator](https://phersa.com/tools/break-even-roas-calculator).

## Working back from a target ROAS

Turn the formula around to plan a budget. Revenue needed = target ROAS × ad spend. Sales needed = revenue needed ÷ price per sale.

**Made-up example:** a $300 budget with a target of 2.5× needs $750 in sales. At $25 a sale, that is 30 sales. If 30 sales from $300 of ads looks out of reach, change the budget, the price or the target.

Sell from a Reel without a link in bio: send your link by DM to everyone who comments your keyword on Instagram or a Facebook Page. [How comment-to-DM works →](https://phersa.com/comment-to-dm)

## ROAS Calculator questions

### What is a good ROAS?

Any ROAS above your break-even ROAS. That number comes from your own margin: break-even ROAS = 1 ÷ margin. At a 50% margin you break even at 2×; at a 25% margin, at 4×. So the same ROAS can make money for one seller and lose it for another.

[Find your break-even ROAS →](https://phersa.com/tools/break-even-roas-calculator)

### Is ROAS the same as ROI?

No. ROAS divides revenue by ad spend. ROI divides profit, after all costs, by what you spent. A 3× ROAS can still lose money if each sale leaves only a small margin.

### How do I write ROAS as a percentage?

Multiply the ratio by 100. A ROAS of 3.5× is 350%, and 0.8× is 80%. Both forms mean the same thing.

### Why is my ROAS in Ads Manager different from my store’s numbers?

Because they count different sales. Ads Manager counts only the purchases its connected tools report and credit to your ads, under your attribution setting. Your store counts every sale, including ones from organic posts.

### Should affiliate commissions count as revenue?

Yes. Use the commissions you earn, not the price the buyer paid the brand. The commission is the money the ads brought you.

## More free tools

- [Break-Even ROAS Calculator — Profit per sale, break-even ROAS and the most you can pay in ads per sale, from your price and costs.](https://phersa.com/tools/break-even-roas-calculator)
- [CPM Calculator — Solve CPM, ad cost or impressions from the other two, plus CTR, cost per click and frequency.](https://phersa.com/tools/cpm-calculator)
- [Profit Margin Calculator — Profit, margin and markup from cost and price, or the price to charge for the margin or markup you want.](https://phersa.com/tools/profit-margin-calculator)

[See all free tools for AI persona creators →](https://phersa.com/tools)

Source: https://phersa.com/tools/roas-calculator