ROAS Calculator
Calculate return on ad spend for your advertising campaigns. Essential for measuring marketing ROI and campaign profitability.
ROAS
5.00x
ROAS = Revenue / Ad Spend
Net Profit
$20,000
ROI
400.0%
Profit Margin
80.0%
ROAS as %
500%
ROAS Performance Scale
Target ROAS by Industry
How to Use This Calculator
Enter your total ad spend amount
Input the revenue generated from ads
Calculate your ROAS percentage or ratio
Compare to industry benchmarks
Frequently Asked Questions
What is a good ROAS?
A good ROAS is typically 4:1 (400%), meaning $4 revenue for every $1 spent. However, acceptable ROAS varies by industry, profit margins, and business model. E-commerce often targets 3-5x, while lead gen may target 2-3x.
How is ROAS different from ROI?
ROAS measures revenue generated per dollar of ad spend, while ROI factors in all costs (production, overhead, etc.) to measure actual profit. ROAS of 4x doesn't mean 400% profit—you need to subtract costs.
What ROAS should I target?
Your target ROAS depends on profit margins. If your margin is 30%, you need at least 3.3x ROAS to break even. Higher margins allow for lower ROAS targets while remaining profitable.
Why is my ROAS declining?
Declining ROAS often results from audience fatigue, increased competition, seasonality, poor targeting, or scaling too quickly. Review creative performance, audience overlap, and conversion path issues.
Should I optimize for ROAS or revenue?
It depends on your goals. Higher ROAS typically means lower volume but better efficiency. Sometimes accepting lower ROAS to capture more market share is strategic, especially during growth phases.
Why Use This Calculator
- Measure advertising campaign profitability
- Compare ROI across different channels
- Set realistic ROAS targets
- Optimize budget allocation
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"We use these calculators in every client pitch. They make it easy to set realistic expectations and prove projected ROI."
Account Director, Digital Agency