ROAS Calculator
Calculate your Return on Ad Spend instantly. Enter your revenue and ad spend to see your ROAS, ROI, and whether your campaigns are profitable.
How to Calculate Your ROAS
Enter Revenue
Input the total revenue generated from your advertising campaigns.
Enter Ad Spend
Input the total amount you spent on advertising.
See Your Results
Get your ROAS, ROI percentage, and profit/loss breakdown instantly.
Frequently Asked Questions
What is ROAS and how is it calculated?
ROAS (Return on Ad Spend) measures revenue earned for every dollar spent on advertising. The formula is: ROAS = Total Revenue from Ads ÷ Total Ad Spend. For example, if you spend $1,000 on ads and generate $4,000 in revenue, your ROAS is 4.0x (or 400%).
What is a good ROAS?
A good ROAS depends on your industry and profit margins. Generally, 2x-3x is considered acceptable for most ecommerce businesses, 4x+ is good, and 5x+ is excellent. However, a business with 80% margins can be profitable at 1.5x ROAS, while a business with 20% margins needs at least 5x ROAS to break even.
What is the difference between ROAS and ROI?
ROAS measures gross revenue generated per dollar of ad spend (Revenue ÷ Ad Spend). ROI accounts for all costs including product costs, overhead, and ad spend ((Revenue - Total Costs) ÷ Total Costs × 100). ROAS is typically used to evaluate ad campaign performance, while ROI evaluates overall business profitability.
How can I improve my ROAS?
Improve ROAS by: (1) improving ad creative to increase click-through rates, (2) refining audience targeting to reach higher-intent buyers, (3) optimizing landing pages to boost conversion rates, (4) increasing average order value through upsells and bundles, and (5) reducing wasted spend by pausing underperforming ads.
What ROAS do I need to be profitable?
Your break-even ROAS depends on your profit margin. Calculate it as: Break-Even ROAS = 1 ÷ Profit Margin. For example, with a 25% profit margin, you need at least 4x ROAS to break even. Anything above that is profit. Use our Break-Even ROAS Calculator for a more detailed analysis.
Should I use ROAS or CPA to measure ad performance?
Both metrics are valuable. ROAS is better when your products have varying prices since it accounts for revenue. CPA (Cost Per Acquisition) is better when all sales have similar value. Most marketers track both — ROAS for overall campaign health and CPA for individual ad set optimization.
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