📊 ROAS Calculator
Calculate Return on Ad Spend
Revenue generated from advertising
Total amount spent on advertising
How to Use This Calculator
Enter Revenue from Ads
Input the total revenue generated from your advertising campaigns. This should be revenue directly attributable to your ad spend.
Enter Ad Spend
Input the total amount spent on advertising for the same period. Include all advertising costs: platform fees, creative costs, management fees, etc.
Calculate
Click calculate to see your ROAS, ROI, and profit. ROAS shows how many dollars you earn for each dollar spent.
Review Results
Use ROAS to evaluate campaign effectiveness, compare channels, and optimize ad spend for maximum returns.
Formula
Return on Ad Spend (ROAS):
ROAS = Revenue from Ads / Ad Spend
ROI (Return on Investment):
ROI = ((Revenue - Ad Spend) / Ad Spend) × 100%
Profit:
Profit = Revenue from Ads - Ad Spend
Example 1: Successful Campaign
Revenue: $10,000, Ad Spend: $2,000
ROAS: $10,000 / $2,000 = 5.0x
ROI: (($10,000 - $2,000) / $2,000) × 100% = 400%
Profit: $10,000 - $2,000 = $8,000
✅ Excellent - earning $5 for every $1 spent
Example 2: Break-Even Campaign
Revenue: $2,000, Ad Spend: $2,000
ROAS: $2,000 / $2,000 = 1.0x
ROI: (($2,000 - $2,000) / $2,000) × 100% = 0%
Profit: $2,000 - $2,000 = $0
⚠️ Break-even - no profit
About ROAS Calculator
The ROAS (Return on Ad Spend) Calculator helps marketers measure the effectiveness of advertising campaigns by calculating how much revenue is generated for each dollar spent on advertising. This critical marketing metric shows the efficiency of your ad spend, helping you optimize campaigns, compare channels, allocate budgets, and maximize marketing ROI.
When to Use This Calculator
- Campaign Analysis: Evaluate the performance of advertising campaigns
- Channel Comparison: Compare ROAS across different advertising channels
- Budget Allocation: Allocate advertising budgets based on ROAS performance
- Campaign Optimization: Identify high-performing campaigns to scale and low-performing ones to optimize
- ROI Measurement: Measure marketing ROI and advertising effectiveness
- Performance Tracking: Track ROAS over time to identify trends
Why Use Our Calculator?
- ✅ Quick Calculation: Instantly calculate ROAS from revenue and ad spend
- ✅ Multiple Metrics: Shows ROAS, ROI, and profit for comprehensive analysis
- ✅ Clear Results: Easy-to-understand display with performance indicators
- ✅ Performance Indicators: Color-coded results indicate performance level
- ✅ Free Tool: No cost for essential marketing analytics
Common Applications
- Digital Advertising: Calculate ROAS for Google Ads, Facebook Ads, and other platforms
- E-Commerce: Measure advertising effectiveness for online stores
- Marketing Campaigns: Evaluate performance of marketing campaigns
- Multi-Channel Marketing: Compare ROAS across different marketing channels
Tips for Best Results
- Accurate Attribution: Use accurate revenue attribution to ad spend
- Include All Costs: Include all advertising costs (platform fees, creative, management)
- Time Period Consistency: Ensure revenue and ad spend are from the same period
- Compare Benchmarks: Compare ROAS to industry benchmarks (typically 4:1 or higher is good)
- Segment Analysis: Calculate ROAS by channel, campaign, or product for deeper insights
Frequently Asked Questions
What's a good ROAS?
A good ROAS depends on your industry and profit margins. Generally, ROAS of 4:1 (4x) or higher is considered good, meaning you earn $4 for every $1 spent. However, for businesses with high profit margins, lower ROAS may be acceptable. For low-margin businesses, higher ROAS is needed. Aim for ROAS that exceeds your break-even point after accounting for costs.
What's the difference between ROAS and ROI?
ROAS measures revenue per dollar spent (revenue/spend), while ROI measures profit percentage ((revenue - spend)/spend × 100%). ROAS shows efficiency in generating revenue, while ROI shows profitability. ROAS doesn't account for costs beyond ad spend, while ROI shows net profit. Use both for comprehensive analysis.
How do I improve my ROAS?
Improve ROAS by: optimizing targeting, improving ad creative, better landing pages, increasing conversion rates, reducing cost per click, better keyword selection, A/B testing, improving quality scores, focusing on high-performing campaigns, and reducing wasted ad spend. Test and iterate continuously.
Should I track ROAS by channel or campaign?
Track both! Calculate ROAS for each channel (Google, Facebook, etc.) and each campaign to identify what's working. This helps you allocate budget to high-performing channels and campaigns, and optimize or pause low performers. Granular tracking provides better insights for optimization.
What if my ROAS is below 1:1?
ROAS below 1:1 means you're losing money - spending more than you're earning. This is unsustainable. Immediate actions: pause the campaign, review targeting, improve ad creative, optimize landing pages, or adjust strategy. Investigate why costs exceed revenue before continuing.
How do I account for lifetime value in ROAS?
For subscription or recurring revenue businesses, use Customer Lifetime Value (LTV) in ROAS calculation. Instead of first purchase revenue, use LTV: ROAS = (LTV × Customers Acquired) / Ad Spend. This provides more accurate ROAS for businesses with recurring revenue, showing true long-term value of advertising.