ROAS (Return on Ad Spend) Calculator
Instantly calculate ROAS (return on ad spend) from your ad-driven revenue and ad spend. See how much revenue each dollar of ad spend earns.
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Input
$
$
Result
ROAS (return on ad spend)
500%
Revenue from ads
$500,000.00
Ad spend
$100,000.00
Revenue per $1 of ad spend
$5.00
| ROAS (return on ad spend) | 500 % |
| Revenue from ads | $500,000.00 |
| Ad spend | $100,000.00 |
| Revenue per $1 of ad spend | $5.00 |
How it works
- ROAS (return on ad spend) is calculated as "ad-driven revenue ÷ ad spend × 100" and shows how much revenue your advertising generated relative to what you spent.
- A ROAS of 100% means revenue equal to your ad spend, while 300% means three times your ad spend in revenue. The higher the number, the more efficient the advertising.
- The key difference is that ROI is a ratio against profit (revenue minus cost of goods and other expenses), whereas ROAS is a ratio against revenue. For low-margin products, a high ROAS can still result in a loss.
- Your target ROAS depends on your product's margin and cost. It is best to identify the break-even ROAS that accounts for your margin before setting a target.
- Entering only ad-driven revenue measures the effect of advertising alone. To evaluate multiple channels together, align the scope of revenue and ad spend you enter.
Frequently asked questions
- How is ROAS calculated?
- ROAS (return on ad spend) is ad-driven revenue ÷ ad spend × 100. A ROAS of 100% means revenue equal to your spend, while 300% means three times your spend in revenue.
- What is the difference between ROAS and ROI?
- ROAS is a ratio against revenue, whereas ROI is a ratio against profit. For low-margin products a high ROAS can still lose money, so ROI reflects true profitability better.
- What is the break-even ROAS?
- It is roughly 1 ÷ profit margin × 100. The lower your margin, the higher the ROAS you need just to break even, so identify this before setting a target.
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