ROAS profit calculator
Is my ROAS making money? It shows your true ROAS against your break-even ROAS. Shows profit or loss on every ₹100 of ads.
Free answer on screenAbout a minuteYour numbers stay in your browser
Is my ROAS making money?
YES
Full breakdown
Three fixes for your numbers
- Cut ad sets below break-even ROAS this week
- Move COD-heavy pin codes to prepaid offers
- Report ROAS after returns, not before
See the full breakdownThe numbers behind your answer and three fixes, also sent to your WhatsApp.
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Book a callHow it is calculated
Worked through with the typical numbers already in the calculator.
What you get
- Your true ROAS after returns, RTO and cancellations
- The break-even ROAS for your margin
- Profit or loss on every ₹100 of ads
| Step | Formula | Result |
|---|---|---|
| Margin before ads | 1 − 35% product cost − ₹120 ÷ ₹1500 shipping − 2% fees | 55.0% |
| Break-even ROAS | 1 ÷ 55.0% | 1.82 |
| True ROAS | 3.5 platform ROAS × (1 − 20% returns) | 2.80 |
| Profit on every ₹100 of ads | 100 × (2.80 × 55.0% − 1) | ₹54 |
What a good number looks like
Break-even ROAS is 1 divided by margin before ads. Compare it with your true ROAS, never with the platform number.
| Break-even ROAS by margin before ads | |
|---|---|
| 20% margin | 5.00 |
| 30% margin | 3.33 |
| 40% margin | 2.50 |
| 50% margin | 2.00 |
| 60% margin | 1.67 |
This page was updated in October 2026 and reviewed by our senior marketing team.
Mistakes that make this number wrong
We see these in most accounts we audit.
Using the price before discounts
Coupons and sale prices cut what you keep. Use the average price customers actually paid.
Leaving out RTO
An order that comes back undelivered still cost you shipping both ways and the ad that won it.
Reading ROAS on the day
Returns arrive weeks later. Judge ROAS on orders old enough for returns to show.
One number for every product
A 70% margin product and a 30% margin product need very different ROAS to break even.
How to improve it
These are the four levers we pull first, and the service behind each one.
Lever 1
Report ROAS after returns
Campaigns are judged on kept orders, so budget moves to what makes money.
Fixed by tracking and measurementLever 2
Cut returns on top products
We add fit notes, better photos and clear specs to the products that drive most returns.
Fixed by website conversionLever 3
Confirm COD orders
A WhatsApp check before dispatch cuts refused parcels.
Fixed by retention marketingLever 4
Scale only above break-even
Budgets rise every week on campaigns with a true ROAS above break-even.
Fixed by performance marketingDefinitions and questions
What is true ROAS?
The ROAS you actually got: revenue after returns, RTO and cancellations, divided by ad spend.
What is break-even ROAS?
The lowest ROAS you can afford: 1 divided by your margin before ads. At 40% margin it is 2.5.
Why do the two differ?
Platforms count orders when placed. Returns and RTO come later and never reach the dashboard.
What is a good ROAS in India?
There is no single number. A good ROAS is one above your break-even ROAS after returns. At 40% margin and 20% returns, a platform ROAS of about 3.1 only just breaks even.
Why does Meta show a higher ROAS than my bank account?
Meta counts purchases when they are placed and within its attribution window. Returns, RTO, cancellations and orders that would have happened anyway never reach that number.
Should I include GST in the selling price?
Use the price after GST and after discounts, the money you actually keep from each order.
What numbers do I need?
You need your average selling price, product cost, shipping and packing per order, payment fees, return rate and the ROAS your ads platform shows.
What should I do if my ROAS is below break-even?
Cut or rebuild the campaigns below break-even, and work on the costs that raise it, such as returns, RTO and shipping.
Does this work for marketplaces?
Yes. Use your marketplace selling price and include commission in your costs.
How often should I check it?
Check it monthly, and whenever your prices, discounts or return rates change.
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