Calculate return on ad spend from revenue and ad cost.
Calculated locally in your browser.
Understanding your result
ROAS measures gross revenue, not profit; factor in product and overhead costs separately.
Formula and method
ROAS = revenue ÷ ad spend. It is often shown as a ratio (4:1) or a percentage (400%).
Assumptions and limitations
ROAS counts gross revenue, not profit. A campaign can show a high ROAS yet lose money once product, shipping and overhead costs are included.
Worked example
5,000 revenue from 1,000 spend is a ROAS of 5 (500%).
How it compares
| Profit margin | Approx. break-even ROAS |
|---|---|
| 20% | 5× |
| 33% | 3× |
| 50% | 2× |
How to use this tool
- Enter the revenue attributed to ads.
- Enter the ad spend.
Common mistakes to avoid
- Confusing ROAS (revenue based) with ROI (profit based).
About the ROAS Calculator
Return on ad spend (ROAS) shows how much revenue each unit of ad spend generated.
Who should use this tool
Advertisers and marketers measuring the efficiency of paid campaigns on any channel.
Benefits
- See revenue generated per unit of ad spend.
- Read the result as a ratio or a percentage.
- Compare campaigns and channels quickly.
Practical use cases
- Judging whether a campaign is worth scaling.
- Comparing two ad platforms.
- Setting a minimum acceptable ad return.
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Frequently asked questions
What is a good ROAS?
It varies by margin; many businesses target 3–4× or higher to stay profitable.