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
What is the ROAS formula?
ROAS = revenue from ads / ad spend. $9,000 in revenue from $2,500 in spend is a 3.6x ROAS, or 360%.
What is a good ROAS?
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.
What's the difference between ROAS and ROI?
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.
How do I find my break-even ROAS?
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.
How can I improve ROAS?
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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