Work out your return on ad spend, your true profit, and the break-even ROAS you actually need to hit — in seconds. Built for ecommerce and lead-gen advertisers.
Get a free PPC auditROAS (return on ad spend) is how much revenue you earn for every £1 spent on ads: ROAS = Revenue ÷ Ad spend. £4,000 from £1,000 is a ROAS of 4.0 (400%). But ROAS alone doesn’t tell you if you’re profitable — that’s what margin, POAS and break-even ROAS are for.
There’s no universal number — it depends on your margin. A 4x ROAS is excellent on a 60% margin and loss-making on 15%. The only ROAS that matters is one comfortably above your break-even ROAS.
Break-even ROAS is where revenue exactly covers product costs and ad spend: Break-even ROAS = 1 ÷ profit margin. On a 30% margin that’s 3.33. Above it is profit; below it is loss.
POAS (profit on ad spend) uses profit instead of revenue, so it reflects real money. Two products with the same ROAS can have very different POAS. Optimising to POAS grows profit, not just revenue.
Divide revenue generated by your ads by the amount spent. £4,000 ÷ £1,000 = a ROAS of 4.0 — £4 back for every £1 in.
Any figure comfortably above your break-even ROAS, which is set by your margin. On a 30% margin you break even at 3.33x, so 4x+ is healthy.
1 divided by your profit margin — the return at which ad revenue exactly covers product costs plus ad spend.
ROAS uses revenue; POAS uses profit, so it accounts for your margin and reflects real profitability.
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