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.
Your return
ROAS
ROI 60% · profit RM 600.00
| Ad spend | RM 1,000.00 |
|---|---|
| Sales from ads | RM 4,000.00 |
| Gross profit (40%) | RM 1,600.00 |
| Profit after ads | RM 600.00 |
| ROI | 60% |
| Break-even ROAS | 2.50× |
| Break-even sales | RM 2,500.00 |
| ACoS (ad spend ÷ sales) | 25% |
| Cost per order (CPA) | RM 20.00 |
| Average order value | RM 80.00 |
| Break-even CPA | RM 32.00 |
Below break-even: these ads lose money. Raise the ROAS above the break-even ROAS or improve the margin.
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Break-even ROAS by gross margin
| Gross margin | Break-even ROAS | Maximum 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
- Ad spend = amount billed, plus 8% service tax if your invoice adds it.
- ROAS = sales from ads ÷ ad spend.
- Profit after ads = sales × gross margin − ad spend; ROI = profit ÷ ad spend.
- Break-even ROAS = 1 ÷ gross margin; ACoS = ad spend ÷ sales.
- 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
| ROAS | 20% margin | 30% margin | 40% margin | 50% margin |
|---|---|---|---|---|
| 2.00× | -RM 600.00 | -RM 400.00 | -RM 200.00 | RM 0.00 |
| 3.00× | -RM 400.00 | -RM 100.00 | RM 200.00 | RM 500.00 |
| 4.00× | -RM 200.00 | RM 200.00 | RM 600.00 | RM 1,000.00 |
| 5.00× | RM 0.00 | RM 500.00 | RM 1,000.00 | RM 1,500.00 |
| 6.00× | RM 200.00 | RM 800.00 | RM 1,400.00 | RM 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
- Google Ads Help: About Target ROAS bidding
- Fonoa: Malaysia increases SST rate as of 1 March 2024
- RMCD: MySST portal
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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