ROAS Calculator Logo ROAS Calculator

Calculate Your ROAS

Total amount spent on ads ($)
Revenue generated from ads ($)
400%
4.00:1
Profit
$3,000.00
Good ROAS
Good ROAS. Your ads are likely profitable after accounting for costs.
Results update automatically as you type. No need to click a button!

Understanding Your ROAS Results

< 100%: Losing Money

Your ROAS is below 100%, meaning you're spending more on ads than you're earning back. This is unsustainable. Review your targeting, ad creative, and landing pages immediately. Consider pausing underperforming campaigns and reallocating budget to better performers.

100-400%: Break-even to Moderate Return

Your ROAS is between 100-400%. You're covering ad costs but may not be profitable after accounting for product costs, shipping, and overhead. Calculate your break-even ROAS to determine true profitability. Focus on improving conversion rates and reducing cost per acquisition.

400-800%: Good ROAS

Your ROAS is between 400-800%, which is considered good for most businesses. You're likely profitable after accounting for costs. Continue monitoring performance and test incremental improvements. Consider scaling successful campaigns while maintaining efficiency.

≥ 800%: Excellent ROAS

Your ROAS is 800% or higher - excellent! Your advertising is highly profitable. This level of performance is rare. Consider scaling your ad spend to maximize returns while maintaining quality. Document what's working to replicate success across other campaigns.

What is ROAS?

Return on Ad Spend (ROAS) is a marketing metric that measures the revenue generated for every dollar spent on advertising. It's one of the most important KPIs for evaluating the effectiveness of your ad campaigns. ROAS helps you understand whether your advertising investment is profitable and which campaigns, platforms, or ad sets deliver the best returns. Unlike ROI, which considers all business costs, ROAS focuses specifically on advertising performance, making it ideal for optimizing ad spend in real-time. A higher ROAS indicates better campaign performance, but the "good" ROAS varies by industry, business model, and profit margins.

ROAS Calculation Examples

E-commerce Facebook Ads

An online store spent $2,000 on Facebook ads and generated $8,000 in revenue.

Calculation Steps

  • ROAS = ($8,000 / $2,000) × 100 = 400%
  • Ratio: 4:1
  • Profit: $6,000
Result: Good ROAS. The store is likely profitable after accounting for product costs and overhead.

SaaS Google Ads

A SaaS company spent $5,000 on Google Ads and generated $25,000 in revenue.

Calculation Steps

  • ROAS = ($25,000 / $5,000) × 100 = 500%
  • Ratio: 5:1
  • Profit: $20,000
Result: Excellent ROAS. The campaign is highly profitable and should be scaled.

Local Service TikTok Ads

A local service business spent $500 on TikTok ads but only generated $300 in revenue.

Calculation Steps

  • ROAS = ($300 / $500) × 100 = 60%
  • Ratio: 0.6:1
  • Loss: -$200
Result: Losing money. The campaign needs immediate optimization or should be paused.

How to Use This ROAS Calculator

1

Enter your ad spend

Input the total amount you spent on advertising (e.g., $1,000)

2

Enter your revenue

Input the revenue generated from those ads (e.g., $4,000)

3

View your results

The calculator instantly shows your ROAS percentage (400%), ratio (4:1), and profit ($3,000)

4

Interpret the results

Check the color-coded interpretation to understand if your ROAS is good or needs improvement

Why Use a ROAS Calculator?

Quick Performance Assessment

Instantly evaluate if your ad campaigns are profitable without complex spreadsheets or manual calculations.

Data-Driven Decisions

Make informed decisions about which campaigns to scale, optimize, or pause based on concrete ROAS metrics.

Budget Optimization

Identify underperforming campaigns and reallocate budget to high-performing ones to maximize overall returns.

Benchmark Comparison

Compare your ROAS against industry standards to understand if you're competitive in your market.

Understanding ROAS Parameters

Ad Spend

The total amount of money spent on advertising campaigns, including platform fees, creative costs, and management fees. Include: Facebook Ads spend, Google Ads spend, TikTok Ads spend, agency fees, creative production costs. Exclude: Product costs, shipping, overhead, salaries (unless directly related to ad management).

Currency ($, €, £)
Example: $1,000

Revenue from Ads

The total revenue directly attributable to your advertising campaigns, tracked through conversion pixels, UTM parameters, or platform analytics. Use platform conversion tracking (Facebook Pixel, Google Analytics), UTM parameters, or promo codes to attribute revenue to specific campaigns. Important: Only include revenue directly from ads, not organic or other channels.

Currency ($, €, £)
Example: $4,000

Currency

The currency unit for your calculations. Choose the currency that matches your ad platform billing. Supported: US Dollar ($), Euro (€), British Pound (£). The calculator converts all inputs to your selected currency for consistent results.

Currency Symbol
Example: $

ROAS Formula and Calculation

Basic ROAS (Percentage)

If you spent $1,000 on ads and earned $4,000 in revenue: ROAS = ($4,000 / $1,000) × 100 = 400%. Meaning: For every $1 spent on ads, you earned $4 in revenue.

ROAS (%) = (Revenue from Ads / Ad Spend) × 100

Example: $4,000 / $1,000 × 100 = 400%

ROAS Ratio

$4,000 / $1,000 = 4:1. This is the same as 400% but expressed as a ratio. Some marketers prefer this format.

ROAS Ratio = Revenue from Ads / Ad Spend

Example: 4:1

Profit Calculation

$4,000 - $1,000 = $3,000. Important: This is gross profit from ads only. Subtract product costs, shipping, and overhead to calculate net profit.

Profit = Revenue from Ads - Ad Spend

Example: $3,000

Frequently Asked Questions

What is a good ROAS?

A good ROAS typically ranges from 400% (4:1) to 600% (6:1) for most businesses. However, this varies by industry and profit margins. E-commerce businesses with 30% margins need at least 400% ROAS to be profitable, while SaaS companies with 80% margins can be profitable at 200% ROAS.

How do you calculate ROAS?

Calculate ROAS by dividing your revenue from ads by your ad spend, then multiply by 100 for percentage. Formula: (Revenue / Ad Spend) × 100. For example, if you spent $1,000 and earned $4,000, your ROAS is 400%.

What is break-even ROAS?

Break-even ROAS is the minimum ROAS needed to cover all costs and achieve zero profit. It's calculated as 1 / Profit Margin. For example, with a 25% profit margin, your break-even ROAS is 400% (1 / 0.25 = 4). Use our Break-even ROAS Calculator for precise calculations.

What's the difference between ROAS and ROI?

ROAS measures revenue per ad dollar spent, while ROI measures profit per dollar invested (including all costs). ROAS = Revenue / Ad Spend. ROI = (Revenue - All Costs) / All Costs. ROAS is higher because it doesn't account for product costs and overhead.

How can I improve my ROAS?

Improve ROAS by: 1) Optimizing ad targeting to reach high-intent audiences, 2) Improving landing page conversion rates, 3) Testing ad creative and copy, 4) Reducing cost per click through better Quality Scores, 5) Pausing underperforming campaigns and scaling winners.

Is 200% ROAS good?

200% ROAS (2:1) means you earn $2 for every $1 spent on ads. This is generally considered low and may not be profitable after accounting for product costs and overhead. Most businesses need at least 400% ROAS to be profitable.

Disclaimer

This ROAS calculator provides estimates for educational purposes only. Actual profitability depends on your specific costs, profit margins, and business model. Always consult with a financial advisor or accountant for business decisions. We are not responsible for any financial decisions made based on these calculations.