ROAS Calculator
ROAS tells you how much revenue each dollar of advertising returns. Enter your ad-driven revenue and ad spend to see your ROAS as both a ratio and a percentage - the fastest read on campaign profitability.
How to use the roas calculator tool
- 1Enter the revenue generated by the ads.
- 2Enter the ad spend.
- 3Read your ROAS as a ratio and a percentage.
- 4Compare it to your break-even ROAS to judge profitability.
Frequently asked questions
ROAS = revenue from ads / ad spend. $9,000 in revenue from $2,500 in spend is a 3.6x ROAS, or 360%.
A common target is 4x (400%), but break-even depends on your margins. A business with thin margins needs a higher ROAS than one with high margins to profit.
ROAS compares revenue to ad spend only; ROI compares profit to total cost. ROAS is a quick channel metric; ROI is the fuller profitability picture.
Divide 1 by your profit margin. At a 25% margin, break-even ROAS is 4x - below that you lose money on the ads even if revenue looks healthy.
Tighten targeting, improve ad relevance and landing pages to lift conversion rate, cut wasted spend on poor keywords, and raise average order value.
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