How do I calculate my Meta ads ROAS?
To calculate your Meta ads ROAS, divide the revenue your ads brought in by the amount you spent on them. Take both numbers from the same campaigns and the same dates: in Ads Manager, that is the purchase conversion value and the amount spent. If you spent $2,000 and Meta attributes $7,000 in sales, your ROAS is 3.5, often written 3.5x. That number alone does not tell you whether you made money. Compare it with your break-even ROAS, which is 1 divided by your gross margin. With a 40% margin, you need a ROAS of 2.5 just to pay for the ads. Above that line, each sale leaves you some margin; below it, the ads cost more than they bring in. Then check the attributed revenue against the orders in your store, because Meta credits a sale to an ad after a click or a view within its attribution window.
What are the formulas for ROAS, CPA and break-even ROAS?
Four formulas cover everything the calculator shows. Use the same campaigns and the same dates for every number.
- ROAS
- = Attributed revenue ÷ Ad spend
- What each unit spent on ads brings back in revenue.
- CPA
- = Ad spend ÷ Conversions
- What one purchase, lead or sign-up costs you in ads.
- Break-even ROAS
- = 1 ÷ Gross margin
- Write the margin as a decimal: 40% is 0.40, so 1 ÷ 0.40 = 2.5.
- Margin after ads
- = Revenue × Gross margin − Ad spend
- Above zero, the ads pay for themselves. Below zero, they cost you money.
What does a full calculation look like?
These are example numbers, not a benchmark. A shop spends $2,000 on Meta ads in a month. Meta attributes $7,000 in sales to those ads, across 100 purchases, and the shop keeps a 40% gross margin.
| Metric | Calculation | Result |
|---|---|---|
| ROAS | $7,000 ÷ $2,000 | 3.50 |
| CPA | $2,000 ÷ 100 | $20 |
| Break-even ROAS | 1 ÷ 0.40 | 2.50 |
| Margin after ads | $7,000 × 0.40 − $2,000 | $800 |
The ROAS of 3.50 sits 1.00 above the break-even ROAS of 2.50. These ads are profitable: once paid for, they leave $800 of gross margin.
What break-even ROAS do I need for my margin?
The lower your margin, the higher the ROAS you need before an ad pays for itself. Each row is 1 divided by the gross margin.
| Gross margin | Calculation | Break-even ROAS | Revenue needed for $1,000 of ad spend |
|---|---|---|---|
| 20% | 1 ÷ 0.20 | 5.00 | $5,000 |
| 30% | 1 ÷ 0.30 | ≈ 3.33 | ≈ $3,333.33 |
| 40% | 1 ÷ 0.40 | 2.50 | $2,500 |
| 50% | 1 ÷ 0.50 | 2.00 | $2,000 |
| 60% | 1 ÷ 0.60 | ≈ 1.67 | ≈ $1,666.67 |
Rounded to two decimals where the division does not end: 1 ÷ 0.30 = 3.333… and 1 ÷ 0.60 = 1.666…
What if my ROAS is dropping?
Before you cut spend, check whether your sales fell or only the number in Ads Manager moved. Then look, in this order, at an edit that sent ad sets back into learning, a tired creative, ad sets competing in the same auctions, a budget raised too fast, and what happens after the click.