# 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 it

1. Enter the revenue generated by the ads.
2. Enter the ad spend.
3. Read your ROAS as a ratio and a percentage.
4. Compare 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.

Use the interactive tool: https://www.tryspook.com/tools/roas-calculator