function calculateROAS() {
// 1. Get input values
var budget = parseFloat(document.getElementById('adBudget').value);
var cpc = parseFloat(document.getElementById('cpc').value);
var convRate = parseFloat(document.getElementById('convRate').value);
var aov = parseFloat(document.getElementById('aov').value);
// 2. Validate inputs
if (isNaN(budget) || budget <= 0) {
alert("Please enter a valid Ad Budget.");
return;
}
if (isNaN(cpc) || cpc <= 0) {
alert("Please enter a valid Cost Per Click (CPC).");
return;
}
if (isNaN(convRate) || convRate < 0) {
alert("Please enter a valid Conversion Rate.");
return;
}
if (isNaN(aov) || aov < 0) {
alert("Please enter a valid Average Order Value.");
return;
}
// 3. Perform Calculations
// Calculate total clicks available for the budget
var totalClicks = budget / cpc;
// Calculate total conversions (Clicks * Conversion Rate percentage)
var totalConversions = totalClicks * (convRate / 100);
// Calculate total revenue (Conversions * AOV)
var totalRevenue = totalConversions * aov;
// Calculate ROAS Multiplier (Revenue / Budget)
var roasMultiplier = totalRevenue / budget;
// Calculate ROAS Percentage
var roasPercent = roasMultiplier * 100;
// 4. Update the DOM with results
document.getElementById('resClicks').innerText = Math.floor(totalClicks).toLocaleString();
document.getElementById('resConversions').innerText = Math.floor(totalConversions).toLocaleString();
document.getElementById('resRevenue').innerText = "$" + totalRevenue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Format ROAS (e.g., 4.5x)
document.getElementById('resRoasMulti').innerText = roasMultiplier.toFixed(2) + "x";
// Format ROAS % (e.g., 450%)
document.getElementById('resRoasPercent').innerText = roasPercent.toFixed(0) + "%";
// Show the results area
document.getElementById('resultsArea').style.display = "block";
}
What is Return on Ad Spend (ROAS)?
Return on Ad Spend (ROAS) is a critical marketing metric that measures the amount of revenue your business earns for every dollar spent on advertising. Unlike ROI (Return on Investment), which considers total profitability including overhead, ROAS focuses specifically on the effectiveness of your ad campaigns.
How to Calculate ROAS
The formula for calculating ROAS is straightforward:
ROAS = Revenue Derived from Ads / Cost of Ads
For example, if you spend $1,000 on a Google Ads campaign and it generates $5,000 in revenue, your ROAS is 5x (or 500%). This means for every $1 you spent, you got $5 back.
Why Use This Projection Calculator?
Before launching a campaign, it is vital to estimate your potential returns based on your known metrics. This calculator helps you determine:
Traffic Volume: How many clicks your budget can actually buy.
Conversion Estimates: How many sales you might generate based on your historical conversion rates.
Financial Viability: Whether your Average Order Value (AOV) is high enough to support your current Cost Per Click (CPC).
What is a "Good" ROAS?
A "good" ROAS varies by industry and profit margins, but general benchmarks include:
Under 3x: Often considered risky unless your profit margins are very high.
4x (400%): A common target for e-commerce businesses to ensure profitability after covering goods and shipping costs.
5x or higher: considered excellent performance allowing for aggressive scaling.
Use this calculator to adjust your inputs—like improving conversion rates or increasing AOV—to see how they impact your bottom line.