ROAS Calculator (Return on Ad Spend)
Return on ad spend (ROAS) tells you how many dollars of revenue each advertising dollar produced. It's the headline number for judging a campaign's performance.
Your details
- ROAS %
- 400.00%
- Ad ROI %
- 300.00%
Ad spend vs profit
- Ad spend
- $2,500.0025%
- Profit over spend
- $7,500.0075%
Formula
ROAS = revenue from ads ÷ ad spend, shown as a multiple (e.g. 4×) and a percentage. Ad ROI = (revenue − spend) ÷ spend, which nets out the cost.
How it works
A 4× ROAS means $4 of revenue per $1 spent — but ROAS is revenue, not profit. Once you factor in product costs and margins, the break-even ROAS is higher than 1×, so know your margins before celebrating.
Frequently asked questions
What is a good ROAS?⌄
It depends on margins. A common rule of thumb is 4:1, but a high-margin product can thrive on lower ROAS while a thin-margin one needs more. Compare it to your break-even ROAS.
What's the difference between ROAS and ROI?⌄
ROAS compares revenue to ad spend. ROI (or ROAS's net cousin) subtracts the spend first, showing profit relative to cost — a 4× ROAS is a 300% ad ROI.
Does ROAS include product costs?⌄
No. ROAS only weighs revenue against ad spend. For a true profit view, also subtract cost of goods and other variable costs.
Sources & methodology
Revenue ÷ ad spend. ROAS is a revenue ratio, not profit — factor in margins for true profitability.
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