Return on Ad Spend Calculator
Calculate your ROAS instantly. Enter ad spend and revenue, get results in seconds.
Calculate Return on Ad Spend
Your Return on Ad Spend
5.00 ×
For every $1 spent on ads, you earn $5.00 in revenue.
Net Profit
+$4,000
ROI %
+400.0%
Return on Ad Spend Formula
Return on Ad Spend = Revenue from Ads ÷ Ad SpendThe Return on Ad Spend formula divides the revenue generated from your ads by the total amount spent on those ads. A ROAS of 4× means you earn $4 for every $1 spent.
Example: High-performing campaign:
- • Ad Spend: $1,000
- • Revenue: $4,000
- • Return on Ad Spend = 4.0×
Example: Low-performing campaign:
- • Ad Spend: $1,000
- • Revenue: $1,500
- • Return on Ad Spend = 1.5×
A 1.5× ROAS means you're barely breaking even after product costs. Consider optimizing your targeting or creative.
What is Return on Ad Spend?
Return on Ad Spend (also known as ROAS) is a marketing metric that measures the revenue earned for every dollar spent on advertising. It helps you understand the effectiveness of your ad campaigns.
💡 ROAS is the abbreviated form of "Return on Ad Spend" — they mean exactly the same thing.
Good Return on Ad Spend Benchmarks
How to Use
- Enter your total advertising spend in the first field. Include all ad costs: clicks, impressions, and platform fees.
- Enter the total revenue generated from those ads. Tip: Track revenue using UTM parameters or platform conversion tracking.
- Your Return on Ad Spend (ROAS) is calculated instantly. The result shows how many dollars you earn per dollar spent.
- Review the performance indicator and compare against industry benchmarks. Green = excellent, Yellow = needs improvement, Red = losing money.
Frequently Asked Questions
What does Return on Ad Spend mean?
Return on Ad Spend (ROAS) measures how much revenue you generate for every dollar spent on advertising. For example, a Return on Ad Spend of 5× means you earn $5 in revenue for every $1 spent on ads.
Is ROAS the same as Return on Ad Spend?
Yes, ROAS is simply the abbreviation for Return on Ad Spend. They are exactly the same metric. ROAS is more commonly used because it's shorter and easier to say.
How do I calculate Return on Ad Spend manually?
To calculate Return on Ad Spend manually: divide your total revenue from ads by your total ad spend. For example: $10,000 revenue ÷ $2,500 ad spend = 4× Return on Ad Spend.
What is a good Return on Ad Spend?
A good Return on Ad Spend depends on your profit margins. Generally: 2-3× is average, 3-4× is good, and 4×+ is excellent. However, if your margins are low, you may need a higher ROAS to be profitable.
How is Return on Ad Spend different from ROI?
Return on Ad Spend (ROAS) measures revenue per ad dollar spent. ROI (Return on Investment) measures profit percentage after ALL costs, not just ad spend. ROAS is ad-specific; ROI considers your entire investment including product costs, overhead, etc.
What ROAS do I need to be profitable?
Your profitable ROAS depends on your profit margin. If your margin is 50%, you need at least 2× ROAS to break even. If your margin is 25%, you need 4× ROAS. Use our Break-even ROAS Calculator to find your exact number.
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