Hookframe / Free tools / ROAS calculator
ROAS calculator with break-even ROAS and profit after ads
See how much revenue each ad dollar brings back, and whether that is enough to cover your product costs. Free, with the formula shown.
Your numbers
Example numbers. Replace them with yours.
Results
- ROAS
- -
- Break-even ROAS
- -
- Profit after ad spend
- -
Key facts and break-even ROAS by margin
| Formulas | ROAS = revenue / ad spend · break-even ROAS = 1 / gross margin · profit after ad spend = revenue x gross margin - ad spend |
|---|---|
| What you enter | Ad spend, revenue from those ads, gross margin %, and optionally creative or production cost |
| What you get | ROAS, break-even ROAS, profit after ad spend, and a plain-words verdict |
| What it ignores | Returns, repeat purchases, and any cost beyond the gross margin you enter |
| Example numbers | The starting values are examples, not benchmarks. Replace them with your own |
| Gross margin | Break-even ROAS | Meaning |
|---|---|---|
| 25% | 4.00x | $4.00 of revenue per $1 of ads to break even |
| 30% | 3.33x | $3.33 of revenue per $1 of ads to break even |
| 40% | 2.50x | $2.50 of revenue per $1 of ads to break even |
| 50% | 2.00x | $2.00 of revenue per $1 of ads to break even |
| 60% | 1.67x | $1.67 of revenue per $1 of ads to break even |
| 70% | 1.43x | $1.43 of revenue per $1 of ads to break even |
| 80% | 1.25x | $1.25 of revenue per $1 of ads to break even |
How it is calculated
Method: all three results are plain arithmetic on the numbers you enter. Gross margin is read as a percent (50% is used as 0.50), nothing is looked up or estimated, and no benchmark data is used.
- ROAS = revenue / ad spend
- break-even ROAS = 1 / gross margin
- profit after ad spend = revenue x gross margin % - ad spend
Gross margin is entered as a percent, so 50% is used as 0.50 in the formulas. Example: at 50% margin, break-even ROAS = 1 / 0.50 = 2.00x. These numbers cover one ad period only. They ignore returns, repeat purchases and any costs beyond the margin you enter.
If you want X, take Y
If you want know the most you can pay for one customer
Take the Break-even CPA calculator
It turns your order value and margin into a CPA ceiling and shows break-even ROAS too.
If you want compare creative costs before you buy
Take the UGC ad cost calculator
Add up your all-in cost per creator video and see it next to Hookframe packages.
If you want more creative to test when ROAS is under break-even
Three angles on one product, 2 hooks each, so you can see which message works.
If you want a first low-cost test of the format
One finished ad of 8 to 20 seconds with 2 hook versions.
Keep going
- Break-even CPA calculator to get the CPA ceiling that goes with your break-even ROAS.
- UGC ad cost calculator to include creative cost in your all-in numbers.
- All free tools to see the full set of calculators on one page.
- Hookframe packages for prices, turnaround and revisions.
- Hookframe FAQ for what we need from you and what the ads are.
- Terms of Service for refunds, revisions and usage rights.
- Privacy Policy for what data the site does and does not collect.
- The Hookframe reel to see the ad format.
Frequently asked questions
What is a good ROAS?
There is no single good number. It depends on your gross margin. A ROAS above your break-even ROAS (1 divided by gross margin) means the ads covered themselves on product margin. At a 50% margin that line is 2.00x, at 25% it is 4.00x.
Is ROAS the same as profit?
No. ROAS only compares revenue with ad spend. Profit also depends on product cost, shipping, fees and other costs. That is why the calculator also shows break-even ROAS and profit after ad spend.
Which revenue should I enter?
Enter the revenue you attribute to those ads for the period you are looking at, usually from your ad platform or store reports. Different tools attribute revenue differently, so use the same source each time to compare fairly.
What does the optional creative cost field do?
It is added to ad spend to give an all-in ROAS. Use it if you want video production or creator costs counted. Leave it at 0 to ignore it.
Is my data saved or sent anywhere?
The numbers you type stay in your browser and are not sent to us or stored. See the Privacy Policy for what the site itself collects.
Want more creative to test?
Hookframe makes 9:16 UGC-style video ads from your product photos and a short brief. Packages start at $149 per ad. Questions are welcome, with no obligation.
Email hello@hookframeads.com