Free Tool
Amazon ROAS Calculator
Calculate your Return on Ad Spend and find your break-even point. Know exactly when your Amazon ads are profitable.
Calculate Your ROAS
Your ROAS
—
Formula: ROAS = Revenue ÷ Ad Spend
Break-Even ROAS Calculator
Break-Even ROAS
—
ROAS to ACoS Conversion Table
| ROAS | ACoS | Meaning |
|---|---|---|
| 10x | 10% | Excellent - Very profitable |
| 5x | 20% | Good - Healthy returns |
| 4x | 25% | Good - Standard target |
| 3x | 33% | Average - Monitor closely |
| 2x | 50% | Low - Optimize needed |
| 1x | 100% | Break-even on ad spend |
| 0.5x | 200% | Losing money |
What is ROAS (Return on Ad Spend)?
ROAS stands for Return on Ad Spend. It measures how much revenue you generate for every dollar invested in advertising.
The ROAS Formula
ROAS = Revenue ÷ Ad Spend
ROAS Example
If your ads generate $5,000 in revenue from $1,000 in ad spend:
- ROAS = $5,000 ÷ $1,000 = 5x
- You earn $5 for every $1 spent on ads
- Equivalent to 20% ACoS
ROAS vs ACoS
ROAS and ACoS are inverse metrics that measure the same thing differently:
- ROAS = Revenue ÷ Ad Spend (higher is better)
- ACoS = (Ad Spend ÷ Revenue) × 100 (lower is better)
- To convert: ACoS = (1 ÷ ROAS) × 100
Finding Your Target ROAS
Your target ROAS should exceed your break-even ROAS. Use the break-even calculator above to find your specific threshold based on your product margins and Amazon fees.
Frequently Asked Questions
What is ROAS in Amazon advertising?▼
ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent on advertising. A ROAS of 4x means you earn $4 in revenue for every $1 in ad spend. It's the inverse of ACoS.
What is a good ROAS for Amazon PPC?▼
A good ROAS depends on your profit margins. Generally: 5x+ is excellent, 3-5x is good, 2-3x is average. However, your break-even ROAS depends on your specific product margins. Use the break-even calculator above to find yours.
How do I convert ROAS to ACoS?▼
ACoS = 1/ROAS × 100. For example: 4x ROAS = 25% ACoS, 2x ROAS = 50% ACoS, 5x ROAS = 20% ACoS.
What's the difference between ROAS and ROI?▼
ROAS (Return on Ad Spend) measures revenue against ad spend only. ROI (Return on Investment) measures profit against total investment including product costs, fees, and overhead. ROAS is a marketing efficiency metric, while ROI is a profitability metric.
Why is my ROAS low even with good sales?▼
Low ROAS can occur when: 1) CPC (cost per click) is too high relative to conversion value, 2) Conversion rate is low, 3) You're bidding on expensive competitive keywords, 4) Your bids aren't optimized for profitability.
Maximize Your ROAS Automatically
Shurq's AI optimizes your bids in real-time to hit your target ROAS. Average users see 47% improvement.