ROAS Calculator
A ROAS calculator helps you estimate return on ad spend by using attributed revenue and ad spend.
Quick answer
ROAS ratio is revenue divided by ad spend.
What this tells you
- •ROAS ratio is revenue divided by ad spend.
- •ROAS percent is ROAS ratio multiplied by 100.
- •ROAS is an estimate and depends on attribution methodology.
How to Use
- 1Enter attributed revenue for the campaign period.
- 2Enter ad spend for the same period.
- 3Calculate to view estimated ROAS ratio and percentage.
How It Works
Formula
ROAS = Revenue / Ad Spend
ROAS (%) = ROAS x 100The calculator estimates return on ad spend based on entered totals.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
Performance marketing estimate
What Is a Good ROAS?
A 4:1 ROAS ($4 in revenue per $1 of ad spend) is the most commonly cited target for ecommerce campaigns. Many businesses operate profitably between 3:1 and 5:1, while brand awareness campaigns often run lower by design.
Your real benchmark is breakeven ROAS, which equals 1 divided by your gross margin. A store with a 50% margin breaks even at 2.0x, so anything above that earns profit. A store with a 25% margin needs 4.0x just to break even on ad spend before overhead.
Common mistakes
- Using revenue and spend from mismatched periods
- Ignoring attribution model differences across channels
- Treating ROAS as net profit without cost-of-goods and overhead context
Limitations
This tool estimates ROAS from revenue and spend only. It does not include margin, overhead, refunds, taxes, attribution lag, or incrementality analysis.