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ROAS Calculator

Calculate the ROAS (return on ad spend) of your campaigns, expressed both as a multiple (for example, 4.5x) and as a percentage, plus the profit from subtracting ad spend from the revenue generated.

How it works

  1. Enter the campaign's total ad spend.
  2. Enter the revenue directly attributable to that campaign.
  3. The calculator shows ROAS as a multiple (for example, 4.5x) and as a percentage.
  4. You'll also see the dollar profit, calculated by subtracting spend from revenue.

Use cases

  • Evaluating the profitability of campaigns on Google Ads, Meta Ads, or other ad platforms.
  • Comparing performance across different campaigns or advertising channels.
  • Setting a minimum target ROAS before scaling a campaign's budget.
  • Justifying ad spend to clients or leadership with a clear metric.

Use cases

  • Evaluating the profitability of campaigns on Google Ads, Meta Ads, or other ad platforms.
  • Comparing performance across different campaigns or advertising channels.
  • Setting a minimum target ROAS before scaling a campaign's budget.
  • Justifying ad spend to clients or leadership with a clear metric.

Common mistakes

  • Including sales in 'revenue' that didn't actually come from the ad campaign.
    Use only the revenue specifically attributed to that campaign according to your analytics platform or conversion pixel, not total sales for the period.
  • Confusing ROAS with ROI and drawing real profitability conclusions from ROAS alone.
    ROAS doesn't subtract product cost or other operating expenses. To know actual profit, use the ROI Calculator, which does account for those costs.
  • Judging a newly launched campaign against the same minimum ROAS expected from an already-optimized one.
    Campaigns in the learning phase usually have a lower ROAS while the algorithm fine-tunes targeting; it's worth giving it time before comparing figures.

Frequently asked questions

ROAS = revenue generated / ad spend. For example, if you spend $500 on ads and generate $2,250 in attributed sales, the ROAS is 2250 / 500 = 4.5x.

ROAS only relates revenue to ad spend, without subtracting other costs (like the cost of the product). ROI, on the other hand, factors in actual net profit (revenue minus all costs) relative to total investment. A high ROAS doesn't always mean a positive ROI if product margins are thin.

It depends on the business's profit margin. A ROAS of 4x (400%) is a common benchmark in e-commerce, but a business with thin margins may need a much higher ROAS to be profitable, while one with high margins can be profitable at a lower ROAS.

No. The ROAS this tool calculates only compares revenue against ad spend. If you want to know actual profitability accounting for product cost, use the ROI Calculator or Profit Margin Calculator.

Alternatives

Analytics tools like Google Analytics or each platform's ads manager calculate ROAS automatically if conversion tracking is set up. This calculator is useful for quick scenario simulations or double-checking a figure without depending on tracking being configured correctly.