#roas-calculator-wrapper .calc-container {
background-color: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 30px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
#roas-calculator-wrapper h2 {
margin-top: 0;
color: #2c3e50;
font-size: 24px;
margin-bottom: 20px;
border-bottom: 2px solid #0073aa;
padding-bottom: 10px;
display: inline-block;
}
#roas-calculator-wrapper .input-group {
margin-bottom: 20px;
}
#roas-calculator-wrapper label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #444;
}
#roas-calculator-wrapper input[type="number"] {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
#roas-calculator-wrapper .calc-btn {
background-color: #0073aa;
color: white;
border: none;
padding: 15px 30px;
font-size: 18px;
border-radius: 4px;
cursor: pointer;
width: 100%;
transition: background-color 0.3s;
font-weight: bold;
}
#roas-calculator-wrapper .calc-btn:hover {
background-color: #005177;
}
#roas-calculator-wrapper .results-area {
margin-top: 30px;
padding: 20px;
background-color: #ffffff;
border: 1px solid #ddd;
border-radius: 4px;
display: none;
}
#roas-calculator-wrapper .result-row {
display: flex;
justify-content: space-between;
align-items: center;
padding: 10px 0;
border-bottom: 1px solid #eee;
}
#roas-calculator-wrapper .result-row:last-child {
border-bottom: none;
}
#roas-calculator-wrapper .result-label {
font-weight: 600;
color: #555;
}
#roas-calculator-wrapper .result-value {
font-weight: 700;
font-size: 18px;
color: #2c3e50;
}
#roas-calculator-wrapper .result-value.highlight {
color: #0073aa;
font-size: 22px;
}
#roas-calculator-wrapper .article-section h3 {
font-size: 20px;
color: #333;
margin-top: 30px;
}
#roas-calculator-wrapper .article-section p {
margin-bottom: 15px;
font-size: 16px;
}
#roas-calculator-wrapper .article-section ul {
margin-bottom: 20px;
padding-left: 20px;
}
#roas-calculator-wrapper .article-section li {
margin-bottom: 10px;
}
#roas-calculator-wrapper .formula-box {
background-color: #eef7fb;
padding: 15px;
border-left: 4px solid #0073aa;
font-family: monospace;
margin: 20px 0;
}
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 generic ROI, which looks at the overall profitability of an investment, ROAS specifically targets the effectiveness of direct advertising campaigns.
For digital marketers, eCommerce store owners, and advertisers, calculating ROAS is essential to determine which ad platforms, creatives, or keywords are driving tangible results and which are draining the budget.
How to Calculate ROAS
The formula for calculating ROAS is straightforward. You divide the total conversion value (revenue) generated by the ads by the total cost of those ads.
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 sales, your ROAS calculation would be:
$5,000 / $1,000 = 5:1 (or 500%)
This means for every dollar you put into advertising, you are getting five dollars back in revenue.
What is a Good ROAS?
A "good" ROAS depends heavily on your profit margins, operating expenses, and the overall health of your business. While a 4:1 ratio (400%) is often cited as a common benchmark for success in eCommerce, the reality requires a deeper look at your margins:
- High Margin Products: If your product costs very little to produce, you might be profitable with a ROAS of 2:1 or even lower.
- Low Margin Products: If your margins are thin (e.g., electronics or dropshipping), you might need a ROAS of 6:1 or 10:1 just to break even after covering product costs, shipping, and fees.
Using the Break-Even Analysis
Our calculator includes an optional "Profit Margin" field to help you calculate your Break-Even ROAS. This is the minimum ROAS you need to achieve to not lose money on a sale.
The formula for Break-Even ROAS is: 1 / (Profit Margin % / 100).
For instance, if your profit margin is 25%, your Break-Even ROAS is 4.0. Any campaign yielding a ROAS below 4.0 is essentially losing money, even if it is generating revenue.
function calculateROAS() {
// Get input values
var spendInput = document.getElementById('adSpend');
var revenueInput = document.getElementById('revenueGenerated');
var marginInput = document.getElementById('profitMargin');
var spend = parseFloat(spendInput.value);
var revenue = parseFloat(revenueInput.value);
var margin = parseFloat(marginInput.value);
// Validation
if (isNaN(spend) || spend <= 0) {
alert("Please enter a valid Ad Spend amount greater than 0.");
return;
}
if (isNaN(revenue) || revenue 0) {
var breakEvenRoasVal = 1 / (margin / 100);
document.getElementById('breakEvenRoas').innerHTML = breakEvenRoasVal.toFixed(2) + "x";
breakEvenRow.style.display = "flex";
// Optional: Add visual cue if current ROAS is below break-even
var roasRatioElement = document.getElementById('roasRatio');
if (roasVal < breakEvenRoasVal) {
roasRatioElement.style.color = "#d35400"; // Red/Orange warning color
roasRatioElement.innerHTML += "
";
} else {
roasRatioElement.style.color = "#27ae60"; // Green success color
}
} else {
breakEvenRow.style.display = "none";
document.getElementById('roasRatio').style.color = "#0073aa"; // Reset color
}
// Show results area
document.getElementById('resultsArea').style.display = "block";
}