Calculate Roas

by

ROAS Calculator

Return on Ad Spend Calculator

Your Campaign ROAS is:
0.00x
(0%)

What is ROAS (Return on Ad Spend)?

Return on Ad Spend (ROAS) is a marketing metric that measures the amount of revenue your business earns for each dollar it spends on advertising. For digital marketers and e-commerce businesses, ROAS is one of the most critical Key Performance Indicators (KPIs) to determine the effectiveness and profitability of specific campaigns, channels, or platforms like Google Ads and Facebook Ads.

The ROAS Formula

The mathematical calculation for ROAS is straightforward:

ROAS = Total Revenue from Ads / Total Cost of Ads

How to Use This Calculator

  1. Total Revenue: Enter the total sales value generated directly from your advertising tracking pixels or CRM.
  2. Total Ad Spend: Enter the total cost paid to the advertising platform (e.g., your monthly Facebook spend).
  3. Analyze: Review the ratio and percentage to determine if your campaign is meeting your break-even goals.

ROAS Calculation Example

Imagine you run a campaign for a boutique clothing store:

  • Ad Spend: $2,000
  • Revenue Generated: $10,000
  • Calculation: $10,000 / $2,000 = 5.0
  • Result: Your ROAS is 5.0x (or 500%). This means for every $1 spent, you earned $5 in revenue.

What is a Good ROAS?

While a "good" ROAS varies by industry and business model, here are some general benchmarks:

  • 1.0x (100%): Breaking even on ad spend, but likely losing money after considering cost of goods sold (COGS) and shipping.
  • 2.0x (200%): Often considered the bare minimum for sustainability for many retail businesses.
  • 4.0x (400%): Generally considered a successful and healthy campaign for e-commerce.
  • 8.0x+ (800%): Exceptional performance, often seen in highly optimized remarketing campaigns.
function calculateROAS() { var revenue = parseFloat(document.getElementById('totalRevenue').value); var spend = parseFloat(document.getElementById('totalAdSpend').value); var resultDiv = document.getElementById('roasResult'); var ratioDisplay = document.getElementById('roasRatio'); var percentDisplay = document.getElementById('roasPercentage'); var interpretation = document.getElementById('roasInterpretation'); if (isNaN(revenue) || isNaN(spend) || spend <= 0) { alert("Please enter valid positive numbers. Ad spend must be greater than zero."); return; } var roasValue = revenue / spend; var roasPercent = roasValue * 100; ratioDisplay.innerHTML = roasValue.toFixed(2) + "x"; percentDisplay.innerHTML = "(" + roasPercent.toFixed(0) + "%)"; resultDiv.style.display = "block"; var msg = ""; if (roasValue = 1 && roasValue = 3 && roasValue < 6) { msg = "This is a strong ROAS! Your campaign is performing well above average."; } else { msg = "Excellent performance! This campaign is highly efficient and scalable."; } interpretation.innerHTML = msg; resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

Leave a Comment