ROAS Calculator
Calculate your Return on Ad Spend and analyze campaign profitability instantly.
$
$
Your ROAS
0%
Ratio
0:1
Gross Profit
$0.00
What is ROAS?
Return on Ad Spend (ROAS) is a key marketing metric that measures the amount of revenue your business earns for every dollar it spends on advertising. For digital marketers, it is the primary gauge of how effective a specific campaign, keyword, or ad set is at driving financial results.
The ROAS Formula
The calculation is straightforward but powerful:
ROAS = (Total Revenue from Ads / Total Ad Spend) x 100
Why ROAS Matters for Your Business
Unlike ROI (Return on Investment), which accounts for all costs including overhead and manufacturing, ROAS focuses purely on ad spend efficiency. It helps you identify which platforms (Google Ads, Facebook, TikTok) are producing the highest volume of sales relative to their cost.
Realistic Example:
If you spend $2,500 on a Facebook Ads campaign and generate $10,000 in attributed sales, your ROAS is 400% (or a 4:1 ratio). This means for every $1 you spent, you earned $4 back in revenue.
If you spend $2,500 on a Facebook Ads campaign and generate $10,000 in attributed sales, your ROAS is 400% (or a 4:1 ratio). This means for every $1 you spent, you earned $4 back in revenue.
What is a "Good" ROAS?
While a "good" ROAS varies by industry and profit margins, here is a general benchmark:
- Under 200% (2:1): Often indicates a loss when accounting for COGS and shipping.
- 400% (4:1): A common benchmark for sustainable, profitable growth.
- 800%+ (8:1): Exceptional performance, indicating a highly optimized campaign.