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ROAS Calculator

ROAS = sales from ads ÷ ad spend. RM4,000 of sales from RM1,000 of ads is a ROAS of 4.00×; with a 40% gross margin that is RM 600.00 profit and 60% ROI. Your break-even ROAS is 1 ÷ margin, 2.50× at 40%. Enter your ad numbers below.

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Your campaign

Gross margin = (price − product cost − platform fees) ÷ price, before ads.

Your return

ROAS

4.00×

ROI 60% · profit RM 600.00

Breakdown
Ad spendRM 1,000.00
Sales from adsRM 4,000.00
Gross profit (40%)RM 1,600.00
Profit after adsRM 600.00
ROI60%
Break-even ROAS2.50×
Break-even salesRM 2,500.00
ACoS (ad spend ÷ sales)25%
Cost per order (CPA)RM 20.00
Average order valueRM 80.00
Break-even CPARM 32.00

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Break-even ROAS by gross margin

Gross marginBreak-even ROASMaximum ACoS
10%10.00×10%
15%6.67×15%
20%5.00×20%
25%4.00×25%
30%3.33×30%
40%2.50×40%
50%2.00×50%
60%1.67×60%
70%1.43×70%

How ROAS and ROI are worked out

  1. Ad spend = amount billed, plus 8% service tax if your invoice adds it.
  2. ROAS = sales from ads ÷ ad spend.
  3. Profit after ads = sales × gross margin − ad spend; ROI = profit ÷ ad spend.
  4. Break-even ROAS = 1 ÷ gross margin; ACoS = ad spend ÷ sales.
  5. CPA = ad spend ÷ orders; break-even CPA = average order value × gross margin.

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Profit on RM1,000 of ads by ROAS and margin

ROAS20% margin30% margin40% margin50% margin
2.00×-RM 600.00-RM 400.00-RM 200.00RM 0.00
3.00×-RM 400.00-RM 100.00RM 200.00RM 500.00
4.00×-RM 200.00RM 200.00RM 600.00RM 1,000.00
5.00×RM 0.00RM 500.00RM 1,000.00RM 1,500.00
6.00×RM 200.00RM 800.00RM 1,400.00RM 2,000.00

Service tax on online ads in Malaysia

  • Rate: 8% service tax on imported digital services from 1 March 2024 (6% before).
  • Who charges it: registered foreign digital service providers charge it on their invoices; check whether your Meta, TikTok or Google invoice shows it.
  • Count it as spend: unless your business can recover it, the tax is part of the ad cost.

Sources

Disclaimer: An estimate. Attribution windows, returns and fees change real results; check how your platform invoices tax.

Frequently asked questions

How do I calculate ROAS?

ROAS = sales from ads ÷ ad spend. RM4,000 of sales from RM1,000 of ads is a ROAS of 4.00×, meaning RM4 of sales for every RM1 spent.

What is a good ROAS?

Any ROAS above your break-even ROAS makes money. Break-even ROAS = 1 ÷ gross margin: a 40% margin needs 2.50×, a 25% margin 4.00× and a 50% margin 2.00×. A ROAS of 4 is profitable at a 40% margin but loses money at a 20% margin (break-even 5.00×).

What is the difference between ROAS and ROI?

ROAS compares sales with ad spend; ROI compares profit with ad spend. RM4,000 sales, a 40% margin and RM1,000 of ads give ROAS 4.00× but ROI 60% (RM 600.00 profit).

Is there tax on Facebook, TikTok or Google ads in Malaysia?

Since 1 March 2024 Malaysia charges 8% service tax on imported digital services, which include online ads bought from foreign platforms. If your invoice shows it, add it to the spend: RM1,000 becomes RM1,080, and the example ROAS falls to 3.70× with RM 520.00 profit.

What is break-even CPA?

The most you can pay for one order without a loss: average order value × gross margin. With RM80 orders and a 40% margin it is RM 32.00; the example's CPA of RM 20.00 leaves room to spend more.

What is ACoS?

Advertising cost of sales, used on Shopee, Lazada and Amazon: ad spend ÷ sales. It is the inverse of ROAS, so ROAS 4.00× equals 25% ACoS. Stay below your gross margin to keep a profit.

Which sales should I count in ROAS?

Use sales attributed to the ads in the same period, after cancellations and returns where possible. Platform-reported ROAS depends on the attribution window, so compare it with your own order records.

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