Facebook Ads ROAS Calculator

ROAS on Meta (Facebook & Instagram)

Meta reports purchase ROAS using its own attribution setting — 7-day click and 1-day view by default — which credits views that never led to a click. That makes in-platform ROAS look better than any click-only source. Decide which attribution you are measuring before comparing Meta to Google or to your store.

Since iOS privacy changes, Meta models a share of conversions rather than observing them, so day-level ROAS swings and settles over roughly 72 hours. Read ROAS over 7-day or campaign-lifetime windows, and pair it with the break-even threshold from this calculator: a prospecting campaign at 2.5× with a 40% margin is at exactly break-even, not 'profitable'.

Formula

ROAS = Revenue from ads ÷ Ad spend
Break-even ROAS = 1 ÷ Gross margin
Profit after ad spend = (Revenue × Gross margin) − Ad spend

How to read ROAS

ROAS answers one question: for every unit spent on ads, how much revenue came back? A ROAS of 4.0 (or 400%) means each 1 spent returned 4 in revenue. It says nothing about profit, which is why the break-even figure matters more than the headline number.

Break-even ROAS is the inverse of gross margin. At a 40% margin you need a 2.5× ROAS just to cover the cost of goods and the ads; anything below that loses money on every sale even though revenue is growing. Set campaign targets above break-even, not above zero.

Frequently asked questions

Should I use 7-day click or 1-day click ROAS?

Use the window that matches your purchase cycle. Impulse products under $50 convert mostly within a day; considered purchases need the 7-day window. Whatever you pick, keep it fixed when comparing campaigns, and validate against blended ROAS (total revenue ÷ total spend) monthly.

Does the ROAS include Advantage+ shopping campaigns correctly?

Yes — the formula is the same. The caveat is that Advantage+ campaigns mix retargeting and prospecting audiences, so their blended ROAS looks higher than a pure prospecting campaign. Use the existing-customer budget cap to see how much of the revenue is really incremental.

What is a good ROAS?

A ROAS comfortably above your break-even ROAS. For a 50% margin business break-even is 2.0×, so 3–4× leaves room for profit; for a 20% margin business break-even is already 5.0×. The same ROAS number can be excellent for one business and a loss for another.

Why is my ROAS different in Google Ads, Meta and GA4?

Each platform attributes conversions with its own window and model, and platform-reported ROAS usually double-counts across channels. Use platform ROAS to optimise within a channel and a blended figure (total revenue ÷ total spend) to judge the overall budget.

Should ROAS include ad spend in the margin?

No. Gross margin here is revenue minus cost of goods and fulfilment, before advertising. Ad spend is the denominator of ROAS, so including it in the margin would count it twice.

How does break-even ROAS change with returns and refunds?

Refunds reduce effective gross margin. If 8% of orders are refunded, multiply your margin by 0.92 before inverting it, and the break-even ROAS rises accordingly.