What is ROAS?
ROAS, or return on ad spend, is the revenue you earn for every dollar you put into ads.
Spend $1, bring in $4.50, and your ROAS is 4.5x. Or 450%. Same number, two ways to write it.
It beats clicks and CPL as a scoreboard because it counts money, not attention. But it has a blind spot. It counts REVENUE, not profit.
How to calculate ROAS, step by step
The ROAS formula is ROAS = revenue / ad spend, with both numbers from the same date range and channel.
Then two more lines turn it from a vanity number into a decision:
- Break-even ROAS = 1 / gross margin
- Profit after ads = (revenue × gross margin) - ad spend
- Cost per held call = ad spend / held calls
Worked example, using the sample numbers in the calculator:
| Step | Math | Result |
|---|---|---|
| ROAS | $45,000 / $10,000 | 4.5x |
| Break-even ROAS | 1 / 70% | 1.43x |
| Gross profit | $45,000 × 70% | $31,500 |
| Profit after ads | $31,500 - $10,000 | $21,500 |
| Cost per held call | $10,000 / 42 | $238 |
| Break-even cost per held call | $31,500 / 42 | $750 |
So each held call costs $238 and could cost up to $750 before the ads stop paying for themselves. That gap is your room to scale.
Break-even ROAS: the number nobody puts in the report
Break-even ROAS is the ROAS where gross profit exactly covers ad spend. Below it, every sale loses money.
| Gross margin | Break-even ROAS | Is 3x profitable? |
|---|---|---|
| 30% | 3.33x | No |
| 50% | 2.00x | Yes, thin |
| 70% | 1.43x | Yes |
| 80% | 1.25x | Yes |
| 90% | 1.11x | Yes |
Same 3x ROAS. Opposite outcomes. Which one is your agency celebrating?
What is a good ROAS for B2B?
A good ROAS for B2B is one that sits comfortably above your break-even ROAS, measured on closed revenue, over a window as long as your sales cycle.
- Use closed revenue. Pipeline is a guess. Signed deals are money.
- Match the window to the cycle. A 60-day sales cycle judged on 7-day ROAS will always look broken.
- Discount platform numbers. SaaS Hero's paid ad ROI playbook notes measured incremental ROAS typically runs 30 to 60% below platform-reported ROAS (saashero.net).
For context, our clients average 9x ROAS across $7M+ in ad spend tested. That is our scoreboard, not a promise for yours.
Why B2B ROAS starts with cost per held call
In B2B, nobody buys from an ad. They buy on a sales call. So ROAS only moves when cost per held call moves.
That is why the calculator asks for held calls. Spend divided by held calls is what one real conversation costs. Gross profit divided by held calls is the ceiling.
We push that number down with a 7-question quiz funnel that takes about 30 seconds and has the calendar INSIDE it, plus email and SMS follow-up. Held and qualified calls get reported separately, never blended.
Next, run the cost per lead calculator, then the CAC calculator and the LTV to CAC ratio calculator. Or read the cost per held call guide and how it works for SaaS lead generation.
Questions
How do you calculate ROAS?
ROAS = revenue from ads / ad spend, using the same period and channel for both. If $5,000 in ads brought in $20,000 in closed revenue, your ROAS is 4x, or 400%.
What is a good ROAS for B2B?
A good B2B ROAS is one comfortably above your break-even ROAS, which is 1 / gross margin, measured on closed revenue over a full sales cycle. At a 75% margin, break-even is 1.33x, so a 3x ROAS leaves room for salaries and overhead.
What is break-even ROAS?
Break-even ROAS is the ROAS at which gross profit exactly covers ad spend. The formula is 1 / gross margin. At a 60% gross margin, break-even ROAS is 1.67x. Anything below it loses money on every sale.
Is ROAS the same as ROI?
No. ROAS is revenue divided by ad spend. ROI compares profit to the total cost of the campaign, including people, tools and delivery. A campaign can show a high ROAS and still have a negative ROI when margins are thin.
Why does my ad platform ROAS not match my CRM?
Ad platforms count conversions with their own attribution windows, and two platforms can claim the same sale. Pull closed revenue from your CRM for the same period and divide by ad spend. That is the ROAS to make decisions on.