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ROAS Calculator

Calculate Return on Ad Spend (ROAS) to measure your advertising effectiveness.

Quick Examples

Select the value you want to calculate
$
Enter the total revenue generated from your advertising campaign
$
Enter the total amount spent on advertising
x
Enter your target ROAS (e.g., 5 means $5 in revenue for every $1 spent)

Check this if your revenue figures include sales tax

%
Enter your profit margin to calculate true ROAS based on profit instead of revenue

About This Calculator

The ROAS (Return on Ad Spend) Calculator helps marketers and business owners measure the effectiveness of their advertising campaigns by calculating the revenue generated for each dollar spent on advertising. ROAS is a critical metric for evaluating ad performance and optimizing marketing budgets. It provides a clear measure of an advertising campaign's financial impact and helps determine which campaigns are worth continuing, optimizing, or discontinuing. With this calculator, you can: - Calculate your ROAS based on revenue and ad spend - Determine how much revenue you need to generate to achieve a target ROAS - Estimate how much you can spend on advertising while maintaining a profitable ROAS - Compare ROAS across different campaigns, platforms, or time periods Understanding your ROAS helps you make data-driven decisions about your marketing investments and ensures you're allocating your budget to the most effective channels and campaigns.

Frequently Asked Questions

What is ROAS?

ROAS (Return on Ad Spend) is a marketing metric that measures the revenue generated for every dollar spent on advertising. It's calculated by dividing the revenue attributed to ads by the cost of those ads. For example, a ROAS of 5x means you're generating $5 in revenue for every $1 spent on advertising.

What's a good ROAS?

A "good" ROAS varies by industry, business model, and campaign objectives. Generally, a ROAS of 4:1 ($4 in revenue for every $1 spent) is considered a healthy target for most businesses. However, businesses with high profit margins might be profitable with a lower ROAS, while those with thin margins might need a higher ROAS. The minimum viable ROAS depends on your profit margin—you should at least break even on your advertising costs.

What's the difference between ROAS and ROI?

While both ROAS and ROI measure return on investment, they differ in what they consider as "investment." ROAS specifically looks at advertising costs, while ROI includes all costs associated with producing and selling a product or service (including production, overhead, and other expenses). ROAS focuses on top-line revenue compared to ad spend, while ROI focuses on profit compared to total investment. Generally, ROAS = Revenue ÷ Ad Spend, while ROI = (Profit - Investment) ÷ Investment.

How can I improve my ROAS?

To improve your ROAS: 1) Optimize your targeting to focus on high-value audiences, 2) Improve your conversion rate through better landing pages, user experience, or offers, 3) Test different ad creatives and messages to increase engagement and click-through rates, 4) Analyze and allocate more budget to your best-performing campaigns, keywords, and channels, 5) Adjust your pricing strategy if your margins allow, and 6) Implement or improve tracking to better attribute revenue to specific marketing efforts.

Should I use ROAS or profit when evaluating ad campaigns?

While ROAS is a valuable metric, considering profit in your calculations provides a more complete picture of campaign performance. This is why our calculator includes an option for "Profit ROAS" which factors in your profit margin. For the most accurate evaluation, use both metrics together: ROAS helps you understand how efficiently your advertising generates revenue, while profit-based calculations tell you how those campaigns impact your bottom line.

How do I calculate ROAS for campaigns with different conversion time frames?

For campaigns with longer conversion cycles: 1) Use attribution models that account for the full customer journey (e.g., position-based or time-decay models), 2) Extend your measurement window to capture delayed conversions, 3) Consider lifetime value (LTV) for subscription or repeat purchase businesses, 4) Use cohort analysis to track how specific groups convert over time. The key is aligning your ROAS calculation timeframe with your typical sales cycle to avoid undervaluing campaigns that drive longer-term results.