ROAS Calculator
Return on Ad Spend (ROAS) is the single most important metric for evaluating the performance of paid advertising campaigns. Our free ROAS Calculator lets you input your ad spend and revenue figures to instantly calculate your ROAS ratio – and compare it against your target – so you always know whether your campaigns are delivering the return you need.
Why Use Our ROAS Calculator?
- Calculates ROAS instantly from your ad spend and revenue figures.
- Works for Google Ads, Meta Ads, and any paid advertising channel.
- Helps you identify underperforming campaigns and scale profitable ones.
- Useful for reporting to stakeholders and setting campaign targets.
- Free with no account needed.
How to Use the Calculator:
- Enter your total ad spend for the period you want to analyse.
- Enter the total revenue generated from those ads.
- See your ROAS ratio and an assessment of your campaign performance instantly.
ROAS Calculator
A ROAS of 4:1 (or 400%) means you generate $4 in revenue for every $1 spent on ads. Whether that’s profitable depends on your margins – a business with 70% gross margins needs a very different ROAS to break even than one with 20% margins. Use this calculator alongside your margin data to understand the true profitability of your campaigns.
Frequently Asked Questions
What is ROAS?
ROAS stands for Return on Ad Spend. It measures how much revenue you generate for every unit of currency spent on advertising. It’s calculated as Total Revenue / Ad Spend. A ROAS of 4 means you earn $4 for every $1 spent on ads.
What is a good ROAS?
A ‘good’ ROAS depends entirely on your profit margins. A rough rule of thumb is that a ROAS of 4:1 (400%) is a reasonable starting benchmark for e-commerce, but businesses with lower margins may need 6:1 or higher to be profitable, while high-margin businesses may be profitable at 2:1. Always calculate your break-even ROAS based on your actual margins.
What is the difference between ROAS and ROI?
ROAS measures revenue relative to ad spend: Revenue / Ad Spend. ROI measures profit relative to total costs: (Revenue – Costs) / Costs. ROAS is a simpler, faster metric for evaluating ad performance; ROI gives a fuller picture of profitability when you factor in cost of goods, fulfilment, and other expenses.
How do I calculate my break-even ROAS?
Divide 1 by your gross margin percentage. For example, if your gross margin is 40% (0.4), your break-even ROAS is 1 / 0.4 = 2.5. Any ROAS above that means you’re making a profit on your ad spend; below that and the campaigns are losing money at the gross margin level.