ROAS Calculator
Calculate gross ROAS, net ROAS, break-even ROAS, and LTV-adjusted ROAS in seconds.
ROAS is revenue divided by ad spend. The calculator below works out the four versions of ROAS that actually matter: gross, net, break-even, and the long-term one (LTV-adjusted). Type your numbers in. The answers update as you go. The maths, a worked example, and a note on B2B sit below.
The four ways to work out ROAS
Each one answers a different question. Gross tells you which channel is doing best. Net tells you whether you are making money. Break-even tells you the floor you have to clear. LTV-adjusted tells you the long-term picture. The calculator above does all four at once. Here are the sums.
| Version | The sum | When to use it |
|---|---|---|
| Gross ROAS | Revenue / Ad spend | Comparing channels. Spotting trends. Ignores margin. |
| Net ROAS | (Revenue x Gross margin) / Ad spend | Working out whether you are actually making money. Needs a real margin figure. |
| Break-even ROAS | 1 / Gross margin | The floor. Below this number the campaign loses money. |
| LTV-adjusted ROAS | (Revenue x LTV multiplier x Gross margin) / Ad spend | Subscription or repeat-purchase businesses. Only use it when you can back the LTV multiplier with real retention data. |
ROAS is a ratio, so the currency does not matter. Pounds, dollars, euros, pick one and stay with it. The answer comes out the same.
Worked example
A B2B software team spends 10,000 on a campaign. It brings in 45,000 of revenue in the first year. Their gross margin is 75%. They expect the average customer to spend three times their first-year revenue across the life of the contract.
- Gross ROAS = 45,000 / 10,000 = 4.5x
- Net ROAS = (45,000 x 0.75) / 10,000 = 3.375x
- Break-even ROAS = 1 / 0.75 = 1.33x
- LTV-adjusted ROAS = (45,000 x 3.0 x 0.75) / 10,000 = 10.125x
Gross ROAS is the number most teams put on a slide. Net ROAS is the one finance cares about. Break-even is the floor: anything below it is losing money. LTV-adjusted is the long-term picture, and only worth quoting if you can defend the LTV multiplier.
A note for B2B
Most ROAS articles online are written for ecommerce. B2B is harder. Revenue arrives months after the campaign, not weeks. The decision involves six to ten people, not one (Gartner). And pipeline is not revenue. Only use gross and net ROAS at the campaign level when you can trace closed-won revenue back to the ads that started it. For earlier reporting, use a pipeline-weighted version. Just do not mix the two up.
What this calculator can't do
The calculator gives you the four numbers. It cannot tell you whether your attribution is right. If the revenue figure is wrong because the leads behind it were wrong, no calculator can fix that. The fix sits upstream, at the point you capture the lead. The data truth article covers the upstream fix. The measurement plumbing article covers the wiring.
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