ROAS = Revenue from Ads ÷ Ad Spend
$5,000 revenue ÷ $1,000 ad spend = 5.0× ROAS
Takes: 5 minutes
What You'll Need Before You Start
Before calculating ROAS, gather these key pieces of data:
Ad Spend Data
Total amount spent on advertising (from your ad platform)
Revenue Data
Revenue generated from those ads (tracked via conversions)
Calculator Tool
Use our free calculator below, or Excel/Google Sheets
How to Calculate ROAS: 4 Simple Steps
Follow these steps to calculate your Return on Ad Spend:
Step 1: Gather Your Ad Spend Data
Log into your ad platform (Google Ads, Facebook Ads, etc.) and export your total advertising spend for the period you want to analyze.
- Include all ad costs (clicks, impressions, placements)
- Include platform fees if applicable
- Use consistent time periods
Step 2: Calculate Revenue from Ads
Determine the total revenue generated by your advertising campaigns. Use your analytics or e-commerce platform to track conversions.
- Use proper attribution (Last Click or First Click)
- Consider your attribution window (7-day vs 30-day)
- Account for offline conversions if applicable
Step 3: Apply the ROAS Formula
Divide your total revenue by your total ad spend. The result is your ROAS.
ROAS = Revenue ÷ Ad Spend- Use consistent currency for both values
- Calculate for the same time period
- Double-check your numbers before finalizing
Step 4: Interpret Your Results
Understand what your ROAS value means for your business profitability.
- ROAS < 1×: You're losing money on ads
- ROAS 1-2×: Break-even zone (depends on margins)
- ROAS 2-4×: Healthy performance
- ROAS > 4×: Excellent - scale up!
ROAS Calculation Examples
Let's see the ROAS formula in action with real-world scenarios:
E-commerce Facebook Ads
Online clothing store running Facebook ads
Ad Spend
$2,500
Revenue
$10,000
ROAS
4.0×
Calculation: $10,000 ÷ $2,500 = 4.0×
Excellent! Every $1 spent on Facebook ads generates $4 in revenue. This campaign is highly profitable.
Google Ads Campaign
SaaS company running Google Search ads
Ad Spend
$5,000
Revenue
$12,500
ROAS
2.5×
Calculation: $12,500 ÷ $5,000 = 2.5×
Good performance. Consider your profit margins - with 50%+ margins, this is profitable.
New Product Launch
Testing ads for a new product
Ad Spend
$1,000
Revenue
$800
ROAS
0.8×
Calculation: $800 ÷ $1,000 = 0.8×
Below break-even. You're spending more on ads than you're earning. Time to optimize targeting or creative.
Common Mistakes When Calculating ROAS
Avoid these common errors that lead to inaccurate ROAS calculations:
Confusing Revenue with Profit
ROAS uses gross revenue, not profit. Don't subtract costs from revenue before calculating.
Use total revenue from ads. Calculate profit-based metrics (like ROI) separately.
Ignoring Platform Fees
Some platforms charge additional fees beyond ad spend.
Include all advertising-related costs in your ad spend total.
Using Wrong Attribution Window
A 1-day window vs 28-day window will show very different results.
Use consistent attribution windows. 7-day click is a good default.
Not Accounting for Returns/Refunds
Counting revenue from orders that were later refunded.
Use net revenue after returns, or calculate separately.
Try the Free ROAS Calculator
Put your learning into practice. Enter your numbers below to calculate your ROAS instantly.
Try the Calculator
Enter your numbers below
Your ROAS
For every $1 spent, you earn 5 in revenue.
Frequently Asked Questions
Related Resources
ROAS Formula
Master the complete ROAS formula
What is a Good ROAS?
Industry benchmarks and standards
Break-even ROAS Formula
Calculate your break-even point
How to Improve ROAS
Proven optimization strategies
ROAS Calculator
Calculate your ROAS instantly
Break-even ROAS Calculator
Find your break-even point