ROAS Calculator

How this is calculated

Return on ad spend is revenue attributed to ads divided by what you spent to get it, expressed as a percentage. A ROAS of 800% means eight dollars back for every dollar in.

The 800% benchmark is a directional read for eCommerce, not a universal rule. It exists because gross ROAS ignores everything except media cost: once product cost, shipping, payment fees and overhead come out, a campaign at 400% is usually underwater. Where a profit margin is supplied, the estimated profit line applies it to ad revenue and subtracts the spend.

Where these bands come from

The 800% and 400% thresholds are Shero's own directional reads from client work, not a published industry benchmark, and there is no citation to give for them. They are set where they are because gross ROAS counts only media cost: a campaign returning 4x its ad spend has usually spent the rest on product, shipping, payment fees and overhead before anything reaches the bottom line.

Your real break-even ROAS is a function of your own contribution margin, so treat the bands as a starting point rather than a target. If you know your margin, the estimated profit line above is the more meaningful number: it is arithmetic on figures you supplied, not a heuristic.

Attribution caveat: revenue from ads is whatever your ad platform reports, and platforms routinely claim overlapping credit for the same order. A ROAS built on platform-reported revenue reads high against what your store actually banked.