Free marketing & patients tool
ROAS Calculator: Return on Ad Spend and Break-Even ROAS
ROAS (return on ad spend) is revenue from ads divided by ad spend. $18,000 of revenue from $5,000 of ads is a ROAS of 3.6x, or 360%. A high ROAS is not the same as profit: your break-even ROAS is 1 divided by your gross margin, so at a 60% margin you need at least 1.67x just to cover the ads.
Prepared by Prospyr · Reviewed October 3, 2026 · Free, no sign-up, runs in your browser
Revenue your booking data ties to the ads.
Revenue left after product and provider cost. Sets break-even ROAS.
Optional. For example 20 means keep 20 cents per revenue dollar.
Return on ad spend (ROAS)
3.6x
360% in Google Ads terms: $3.60 of revenue for every $1 spent.
Break-even ROAS
1.67x
1 ÷ 0.6 margin
Profit after ad spend
$5,800
Above break-even
Revenue to break even
$8,333
at $5,000 spend
ROAS for target profit
2.5x
ROAS formula and break-even ROAS
- ROAS: revenue from ads ÷ ad spend (shown as 3.6x or 360%)
- Break-even ROAS: 1 ÷ gross margin
- ROAS for a profit target: 1 ÷ (gross margin − target profit share of ad revenue)
- Profit after ad spend: revenue × gross margin − ad spend
Google Ads reports the same idea as conversion value per cost: total conversion value divided by the total cost of all ad interactions. Its Target ROAS setting expresses it as a percentage, so a 500% target means $5 of value for each $1 spent.
Worked example: is 3.6x ROAS profitable?
A practice spends $5,000 and tracks $18,000 of revenue back to the ads. ROAS is 18,000 ÷ 5,000 = 3.6x. At a 60% gross margin the break-even ROAS is 1 ÷ 0.60 = 1.67x. Gross profit is $18,000 × 0.60 = $10,800, so after the $5,000 of ads the practice keeps $5,800.
| Gross margin | Break-even ROAS | ROAS needed to keep 20% of ad revenue |
|---|---|---|
| 80% | 1.25x | 1.67x |
| 60% | 1.67x | 2.50x |
| 40% | 2.50x | 5.00x |
| 30% | 3.33x | 10.00x |
Using ROAS for a practice
Set the margin per service, not for the whole practice. A neurotoxin visit and a laser package have different margins, so they have different break-even ROAS. Run the calculator once per campaign using revenue your booking data attributes to it.
ROAS only covers ad cost. For all costs, including agency fees, use the marketing ROI calculator, and for the cost of each new patient use the CAC calculator. Tracking which patients came from which source is much easier when the schedule and intake are in one place, as in Prospyr's analytics.
Frequently asked questions
How do you calculate ROAS?
Divide the revenue your ads generated by what you spent on them. Google Ads defines it the same way when it calls the target 'conversion value ÷ ad spend × 100%', so $5 back for every $1 is a 500% ROAS. $18,000 ÷ $5,000 is 3.6x, or 360%.
What is a good ROAS?
A good ROAS is one above your break-even ROAS with enough left over for your profit goal. There is no single number that works for every practice because margins differ. A service with a 60% margin breaks even at 1.67x, while one with a 30% margin needs 3.33x just to cover the ads.
How do I calculate break-even ROAS?
Divide 1 by your gross margin as a decimal. At a 60% margin it is 1 ÷ 0.60 = 1.67x. At that ROAS, the gross profit on the ad revenue exactly equals the ad spend, so you are neither ahead nor behind on that first sale.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend, so it ignores what the service costs you to deliver. ROI compares profit with total cost. Two campaigns with the same ROAS can have very different ROI if one sells a high-margin service and the other a low-margin one. Use the marketing ROI calculator for the profit view.
Should lifetime value count in ROAS for a new patient?
It can, but be careful. Counting only the first visit is the strict test. If your patients usually come back, you may accept a ROAS below break-even on the first visit because later visits pay it back. Use the patient lifetime value calculator to put a number on that, and treat repeat revenue as an estimate, not a result.
Can I trust the ROAS shown in my ad platform?
Treat it as a starting point. Platform ROAS only counts conversions the platform can see, and a booking that no-shows or a call that never gets tracked changes the real figure. Compare it with revenue your own scheduling and billing records tie to the campaign.
Sources and scope
- About Target ROAS bidding. Google Ads Help
Google's formula for ROAS as a percentage (conversion value ÷ ad spend × 100%), with the $5 per $1 equals 500% example.
- Understand your conversion tracking data. Google Ads Help
Defines 'conversion value per cost' as total conversion value divided by the total cost of all ad interactions.
Planning math from the numbers you enter, not financial advice. Break-even ROAS assumes the gross margin you enter holds across the campaign.