₹1 Lakh Store
⌘K
GETTING STARTED
FIND — Get an Idea
VALIDATE — Hit PMF (Phase 3)
UNIT ECONOMICS — First (Phase 4)
SCALE — Build to ₹1L/mo
AI & AUTOMATION
ANALYTICS & DATA
FINANCE
TOOLS & CALCULATORS
    • Unit Economics Calc
    • ROAS Calculator
    • AOV Uplift Simulator
    • Margin Waterfall
    • Break-Even Orders/Day
    • LTV Calculator
    • Influencer ROI Calc
    • Inventory Turnover
    • Price-Point Optimizer
RESOURCES
  1. TOOLS & CALCULATORS
  3. ROAS Calculator

Calculators

ROAS Calculator

Return on Ad Spend tells you if your ads are profitable. Enter your numbers below to calculate ROAS, break-even threshold, and real profit after all costs.
2.5x+ Target ROASProfit Per ₹1 AdScaling DecisionsBreak-Even ROAS

Enter Your Numbers

Any period — monthly totals or single campaign

Understanding ROAS

ROAS = Revenue from Ads ÷ Ad Spend

Break-Even ROAS = 1 ÷ Contribution Margin % — the minimum ROAS needed to cover product + shipping + packaging + gateway + RTO costs. Always use contribution margin, never gross margin.

Contribution Margin % = (Selling Price − All Variable Costs − RTO Loss) ÷ Selling Price

Profit per ₹1 Spent = (Revenue − Total Costs − Ad Spend) ÷ Ad Spend

Monthly Profit/Loss = Revenue from Ads − Total Costs (COGS + shipping + packaging + gateway + RTO) − Ad Spend

Example: Product at ₹599 with ₹150 COGS, ₹55 shipping, ₹25 packaging, ₹14.14 gateway (2.36%), and ₹29.91 RTO buffer (10%). Total variable cost = ₹274.05. CM = 54.2%. Break-even ROAS = 1 ÷ 0.542 = 1.84x. You need 1.84x ROAS just to break even after all costs. Anything above that is profit. For a typical product with 40% CM after RTO, break-even ROAS is 1 ÷ 0.40 = 2.5x — this is why 2.5x is the common Indian D2C benchmark.

What good ROAS looks like for Indian D2C: A healthy ROAS after accounting for COGS, shipping, returns, and payment gateway costs is 2.5x+. Top-performing Indian D2C brands operate at 2.5–3x ROAS on Meta and Google ads after all costs — 3x+ is excellent but not required to start scaling. If your ROAS consistently falls below break-even (from the calculator above), pause the campaign and fix your creative, targeting, or offer before spending more. Remember: a 4x ROAS on a ₹200 product earns less absolute profit than a 3x ROAS on a ₹999 product — always calculate absolute profit, not just the multiplier.