ROAS Calculator for Ads That Book Appointments
Enter your ad spend and revenue, or your lead funnel, to get your ROAS, break-even ROAS and cost per booked appointment.
Know your ad spend and the revenue it brought in? Start here.
- Your ROAS
- 4.00x
- 400% return on ad spend
- Break-even ROAS
- 2.00x
- 1 ÷ 50% margin
- Profit after ad spend
- $5,000
- Gross profit minus ads
- ROI on ad spend
- 100%
- After costs of delivery
- Target ROAS
- 2.86x
- Keeps 15% of revenue as profit after ads
Above break-even. Your 4.00x ROAS clears your 2.00x break-even, so every $1 of ads leaves about $1.00 of gross profit after paying for itself.
- Leads
- 66.7
- Booked
- 26.7
- Showed
- 20
- Customers
- 10
- ROAS
- 3.00x
- 300% on $5,000
- Cost per booked appointment
- $187.50
- From $75.00 per lead
- Revenue from ads
- $15,000
- Cost per customer
- $500.00
- Break-even ROAS
- 1.67x
- 1 ÷ 60% margin
- Profit after ads
- $4,000
- Gross profit minus ads
- Most you can pay per booked appointment
- $337.50
- Break-even cost: job value × margin × show rate × close rate
Above break-even. Your 3.00x ROAS clears your 1.67x break-even, so every $1 of ads leaves about $0.80 of gross profit after paying for itself.
Want this projected for your business?
We model your leads, booked appointments and ROAS from your market, budget and offer.
What is ROAS?
ROAS (return on ad spend) is the revenue your ads bring in divided by what you spent on them. A ROAS of 4, written 4x, 4:1 or 400%, means every $1 of ad spend returned $4 in revenue. ROAS measures how efficient your ads are, not whether they make a profit. That depends on your margin.
Because it only uses two numbers, ROAS is the fastest way to compare campaigns, channels and months. Its weakness is the same: it ignores what it costs you to deliver the sale. That is why this calculator pairs it with break-even ROAS.
The ROAS formula
ROAS
ROAS = Revenue from ads ÷ Ad spend
ROAS as a percentage
ROAS % = (Revenue from ads ÷ Ad spend) × 100
Count only the revenue you can trace to the ads, and the money you paid the ad platform. Agency fees, software and staff time belong in ROI, not ROAS. Here is how to calculate ROAS in two real-world shapes:
Example 1: a med spa running Meta ads
Ad spend for the month: $3,000
Treatments booked from those ads: $10,500
ROAS = $10,500 ÷ $3,000 = 3.5x (350%)
Example 2: a roofing company running Google Ads
Ad spend for the month: $8,000
Roof replacements closed from those leads: 4 at $12,000 each = $48,000
ROAS = $48,000 ÷ $8,000 = 6x (600%)
Neither number tells you yet whether the business made money. The roofer's 6x looks better than the med spa's 3.5x, but if the roofer keeps a smaller share of each job, the gap can shrink or flip. Break-even ROAS settles it.
How to calculate break-even ROAS
Break-even ROAS is the lowest ROAS at which your ads pay for themselves and for the direct cost of each sale. Below it you lose money on every sale the ads bring in; above it you keep a profit.
Break-even ROAS
Break-even ROAS = 1 ÷ Gross margin
Use your gross margin before ad spend: the share of each sale left after product, materials, injectables, provider or crew pay and commissions. Write it as a decimal, so 35% is 0.35.
Example: the roofer from above, with a 35% gross margin
Break-even ROAS = 1 ÷ 0.35 = 2.86x
Check on one $10,000 job: ads at 2.86x cost $3,500, direct costs at 65% are $6,500, and $10,000 − $6,500 − $3,500 = $0.
At 6x the roofer is well above break-even: $48,000 × 0.35 − $8,000 = $8,800 of profit after ads.
Break-even ROAS by gross margin
| Gross margin | Break-even ROAS |
|---|---|
| 20% | 5.00x |
| 30% | 3.33x |
| 40% | 2.50x |
| 50% | 2.00x |
| 60% | 1.67x |
| 70% | 1.43x |
| 80% | 1.25x |
From break-even to target ROAS
Break-even keeps the lights on; a target ROAS builds in the profit you want. Subtract the share of revenue you want to keep after ads from your margin, then divide 1 by what is left (the approach Triple Whale's ROAS guide lays out).
Target ROAS
Target ROAS = 1 ÷ (Gross margin − Profit you want after ads)
The roofer at a 35% margin who wants to keep 15% of revenue needs 1 ÷ (0.35 − 0.15) = 5x. A med spa at a 60% margin that wants to keep 20% needs 1 ÷ 0.40 = 2.5x. If your profit goal is equal to or higher than your margin, no ROAS gets you there.
What is a good ROAS?
A good ROAS is one that clears your break-even ROAS with room left for overhead. There is no universal number, because a 3x ROAS is comfortable at a 60% margin and a loss at a 25% margin. Benchmarks are useful context for which channels tend to return more:
| Ad channel | Median ROAS |
|---|---|
| Google Ads | 3.18 |
| Amazon Ads | 3.04 |
| Microsoft (Bing) Ads | 2.20 |
| Meta Ads | 1.88 |
| TikTok Ads | 1.47 |
Source: Triple Whale, brands advertising on its platform, October 1, 2025 to September 30, 2026. The median across all its brands was 2.22.
- Amazon Ads calls a 2:1 ROAS a bit over the current industry average and says brands ideally want closer to 3 or 4.
- Google's economic impact methodology assumes businesses make an average of $2 in profit for every $1 spent on Google Ads, an estimate from its former chief economist Hal Varian. It is a model for Google's own reporting, not a goal for your account.
These figures come from ecommerce and retail advertisers. We have not found a published ROAS benchmark for med spas, dental practices or home service companies that we would trust, largely because few of them connect ad spend to closed revenue. For service businesses, your own break-even ROAS is the benchmark that matters.
Is a 2.2 ROAS good?
It is if your gross margin is above about 45%, because 1 ÷ 2.2 = 45.5% is where 2.2x breaks even. A med spa treatment at a 60% margin keeps about $0.32 of gross profit for every $1 of ads (2.2 × 0.60 − 1). A contractor at a 30% margin loses about $0.34 per $1 at the same ROAS.
Is a 3.8 ROAS good?
For most service businesses, yes. A 3.8 ROAS breaks even at a 26.3% margin (1 ÷ 3.8). At a 35% margin it leaves about $0.33 per $1 of ads; at a 20% margin it still loses about $0.24 per $1. Plug your own margin into the calculator above to see where you land.
ROAS vs ROI (and MER)
ROAS tells you how much revenue your ad spend produced. ROI tells you how much profit the whole investment produced, after every cost. A marketing ROI calculator and a ROAS calculator answer different questions, so use both.
| Metric | Formula | Answers |
|---|---|---|
| ROAS | Ad revenue ÷ ad spend | Is this campaign efficient? |
| ROI | (Profit − total cost) ÷ total cost | Did the whole investment make money? |
| MER | Total revenue ÷ total marketing spend | Is marketing as a whole paying off? |
Example: same campaign, two answers
Ad spend $5,000, agency fee $1,500, revenue from ads $20,000, gross margin 50%.
ROAS = $20,000 ÷ $5,000 = 4x
Marketing ROI = ($20,000 × 0.50 − $5,000 − $1,500) ÷ $6,500 = 53.8%
MER (marketing efficiency ratio, sometimes called blended ROAS) divides all revenue by all marketing spend across every channel. It is useful when attribution is messy, for example when many customers call after seeing an ad instead of filling in a form, because it does not depend on which platform claims the sale.
How to calculate ROAS for a service business
Ecommerce ROAS calculators assume the ad click becomes a sale. In a med spa, dental practice, roofing company or real estate team it does not: a lead has to book, show up and say yes before any revenue exists. So build ROAS from the funnel.
Service business revenue
Revenue = Leads × Book rate × Show rate × Close rate × Average job value
Which simplifies to
ROAS = (Book rate × Show rate × Close rate × Average job value) ÷ Cost per lead
Labelled example: the calculator's default service business
Monthly ad spend: $5,000 at $75 per lead = 66.7 leads
40% book = 26.7 booked appointments
75% show up = 20 consultations
50% buy = 10 customers
10 × $1,500 average value = $15,000 revenue
ROAS = $15,000 ÷ $5,000 = 3x
Cost per booked appointment = $5,000 ÷ 26.7 = $187.50. Cost per customer = $500.
At a 60% margin: break-even ROAS 1.67x, profit after ads $4,000.
Why cost per booked appointment matters more than cost per lead
Two campaigns can both cost $75 per lead. If one books 20% of its leads and the other books 50%, the first pays $375 per booked appointment and the second $150. With the same show rate, close rate and job value, the second campaign's ROAS is 2.5 times higher. Cost per lead hides that; cost per booked appointment shows it.
Search ads benchmarks from LocaliQ's 2026 report show how far lead costs alone can mislead. They count calls and form fills, not booked appointments:
| Industry | Average cost per lead |
|---|---|
| Beauty and personal care | $39.25 |
| Dentists and dental services | $72.97 |
| Home and home improvement | $90.92 |
| Real estate | $102.51 |
| All industries | $66.69 |
Source: LocaliQ and WordStream, 2026 search advertising benchmarks.
The useful number to know before you spend is the most you can pay per booked appointment and still break even: average job value × gross margin × show rate × close rate. In the example that is $1,500 × 0.60 × 0.75 × 0.50 = $337.50. Any campaign booking below that makes money. If your clients come back, run the numbers on first-visit value and on twelve-month value; a ROAS that looks thin on the first treatment can be strong over a year.
How to improve ROAS
Every input in the service business formula is a lever. In order of how often they move ROAS for local businesses:
- Track to booked and closed, not to leads. Send booked appointments and closed jobs back to Google Ads and Meta so their bidding learns which clicks become revenue. This is what the Growbi System does: every lead followed to a booked appointment and reported as cost per booked appointment.
- Answer leads in minutes. Booking rate is usually the biggest leak. See why the first 5 minutes decide who books.
- Protect the show rate. Confirmation calls, text reminders and deposits for high-value consults turn booked appointments into revenue instead of empty chairs.
- Buy intent, cut waste. Review search terms weekly, add negatives, and bid harder on service-plus-city searches. For dental practices, our dental Google Ads guide shows the campaign structure.
- Pick the channel that fits the job. Home service companies should test Google Local Services Ads, where you pay per lead instead of per click; med spas have to weigh Meta against Google by treatment; roofers should compare lead sources by cost per job.
- Raise the average job value. Packages, memberships and financing lift revenue per customer without touching ad costs. High-ticket offers such as full-arch dental implants can carry a high cost per lead and still return a strong ROAS.
- Refresh creative and landing pages. Tired ads raise cost per lead; a landing page with a clear offer, price guidance and one booking action raises conversion rate.
- Judge on the right window. Consults, quotes and treatment plans close over weeks. Compare ROAS on the same attribution window each month, and give new campaigns time before you cut them.
ROAS calculator FAQ
What should be the ROAS?
Your ROAS should be above your break-even ROAS, which is 1 divided by your gross margin. With a 50% margin you break even at 2x, so anything above 2x makes money on each sale. Amazon Ads calls a 2:1 ROAS a little above the industry average and says brands ideally want 3 to 4, but your margin decides your real floor.
What ROAS is 25% ACoS?
A 25% ACoS equals a 4x ROAS. ACoS is ad spend divided by ad revenue, so ROAS is simply 1 divided by ACoS: 1 ÷ 0.25 = 4. In the other direction, ACoS = 1 ÷ ROAS, so a 5x ROAS is a 20% ACoS and a 2x ROAS is a 50% ACoS.
Is a 2.2 ROAS good?
A 2.2 ROAS is good if your gross margin is above about 45%, because 1 ÷ 2.2 = 45.5% is the margin at which it breaks even. A med spa treatment with a 60% margin keeps about $0.32 of gross profit per $1 of ads at 2.2x. A contractor with a 30% margin loses about $0.34 per $1 at the same ROAS.
Is a 3.8 ROAS good?
A 3.8 ROAS is profitable for any business with a gross margin above about 26%, since 1 ÷ 3.8 = 26.3%. At a 35% margin it leaves about $0.33 of gross profit per $1 of ads. At a 20% margin it still loses about $0.24 per $1, so the same 3.8x can be a win or a loss.
How do you calculate break-even ROAS?
Divide 1 by your gross margin written as a decimal. A 40% margin gives 1 ÷ 0.40 = 2.5x. Use the margin left after the direct costs of each sale or job (product, materials, provider or crew pay, commissions) but before ad spend.
What is a good ROAS for Google Ads?
Across ecommerce brands tracked by Triple Whale from October 2025 to September 2026, the median Google Ads ROAS was 3.18, against 1.88 for Meta Ads. Treat that as context, not a target: a Google Ads campaign is good when its ROAS beats your own break-even ROAS.
Is ROAS the same as ROI?
No. ROAS divides ad revenue by ad spend and ignores every other cost. ROI subtracts all costs, including the cost of delivering the service, agency fees and software, and divides the profit by the total investment. A campaign can show a 4x ROAS and still have a negative ROI if margins are thin.
How do I calculate ROAS for a service business?
Multiply your leads by the share that book, the share that show up and the share that buy to get customers, then multiply customers by your average job or treatment value to get revenue. Divide that revenue by your ad spend. The service business mode of this calculator does the math and also shows your cost per booked appointment.
ACoS definition: Amazon Ads. ROAS guidance: Amazon Ads. Channel medians: Triple Whale.
Guides for ads that book appointments
- Google Local Services Ads: cost, setup and how to rank higher
- Speed to lead: why the first 5 minutes decide who books
- Med spa advertising: channels, costs and compliant ad examples
- Dental Google Ads: how to run campaigns that book patients
- Dental implant marketing: the paid ads playbook for full-arch cases
- Roofing lead generation: 7 lead sources compared by cost per job