ROAS Calculator
Measure return on ad spend from revenue.
Results update as you type.
How it works
A ROAS calculator measures how much revenue each dollar of advertising brings back, dividing the revenue a campaign generated by what it cost to run. A result of 4 times means every dollar spent returned four dollars in sales, which is the single clearest signal of whether an ad campaign is pulling its weight. The tool also expresses that ratio as a percentage and shows the gross revenue earned above the ad spend. The reason marketers lean on this figure is speed and comparability. Return on ad spend lets you rank channels, campaigns and creatives on one consistent scale, so you can shift budget from a 2 times performer toward a 6 times one without wading through spreadsheets. A ROAS calculator turns raw platform numbers into a decision you can act on the same day. The crucial caveat is that ROAS tracks top-line revenue, not profit. A campaign can post a strong ratio and still lose money if the product margin is thin, which is why break-even ROAS depends on your margins. Ecommerce brands, agencies, media buyers and growth teams use a ROAS calculator to judge Facebook, Google and TikTok campaigns, set bidding targets, and defend or cut ad budgets with a number everyone understands.
ROAS = revenue from ads ÷ ad spend
Revenue attributed to the ads is divided by the amount spent on them, giving revenue earned per dollar of spend. The ratio is dimensionless, so a value above 1 means the campaign brought back more than it cost, while below 1 means it lost money before margins are even considered. Multiplying by 100 expresses the same relationship as a percentage, and subtracting spend from revenue shows the gross gain in dollars.
Source:Standard marketing metric (ROAS)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter revenue from ads and ad spend.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
ROAS updates instantly as you type — no button to press.
Frequently asked questions
What is a good ROAS?
There is no universal benchmark, because a good ROAS depends entirely on your profit margin. A common rule of thumb is that 4 times is healthy for many ecommerce businesses, meaning four dollars back for every one spent. But a low-margin product may need 6 times or more just to break even, while a high-margin digital product can thrive at 2 times. Calculate your break-even point first, then treat anything comfortably above it as good.
What is the difference between ROAS and ROI?
ROAS compares revenue to ad spend only, so it measures how effective the advertising is at driving sales. ROI compares profit to total investment, accounting for product cost, shipping, fees and operating expenses as well as ad spend. ROAS is the faster, campaign-level metric for optimising ads day to day, while ROI is the truer measure of whether the business as a whole is actually making money after everything is paid.
What is break-even ROAS?
Break-even ROAS is the point at which ad-driven revenue exactly covers your costs, so the campaign neither makes nor loses money. It is the inverse of your profit margin: if your margin is 25 percent, break-even ROAS is 1 divided by 0.25, which is 4 times. A 50 percent margin only needs 2 times to break even. Know this number before setting targets, because any ROAS below it means the campaign is losing money.
How do I improve my ROAS?
Lift revenue per dollar spent by tightening targeting so ads reach people more likely to buy, and by improving the landing page and offer so more clicks convert. Raising average order value through bundles or upsells increases revenue without extra spend. On the cost side, cut wasted spend on poorly performing keywords, audiences and placements, and refine creative that fails to earn its clicks. Test changes one at a time so you can see which lever actually moved the number.
Does ROAS account for profit?
No, and this is the most important limitation to remember. ROAS measures gross revenue against ad spend, ignoring the cost of the product, shipping, marketplace fees and overhead. A campaign can show an impressive ROAS and still lose money if the margins are thin. Always pair ROAS with your break-even figure and, ideally, with a profit-based metric such as ROI, so a strong-looking ratio never lulls you into scaling a campaign that is quietly unprofitable.