ROAS Calculator
Calculate your Return on Ad Spend (ROAS) — how much revenue you generate for every dollar spent on advertising.
How to use the ROAS Calculator
Enter your total advertising spend for the period.
Enter the revenue directly attributed to that ad spend.
The calculator shows your ROAS ratio and profit before accounting for other costs like product cost or overhead.
ROAS Formula
ROAS = Revenue ÷ Advertising SpendUsually expressed as a ratio, e.g. 4:1 meaning $4 revenue for every $1 spent.
Example
- 1.Ad spend: $2,000
- 2.Revenue: $8,000
- 3.ROAS = $8,000 ÷ $2,000 = 4 (4:1)
- 4.Profit before other costs = $8,000 − $2,000 = $6,000
Frequently Asked Questions
Frequently asked questions about the ROAS Calculator
What is a good ROAS?+
It depends on your margins. A common rule of thumb for retail is 4:1, but a low-margin business may need much higher ROAS to be profitable, while a high-margin business can be profitable at a lower ROAS.
What's the difference between ROAS and ROI?+
ROAS only compares revenue to ad spend. ROI (Return on Investment) factors in all costs, including product cost, overhead and the ad spend itself, giving a more complete profitability picture. See our ROI Calculator.