ROAS Calculator
ROAS (return on ad spend) is revenue from advertising divided by the cost of that advertising. A ROAS of 4.00x means every 1 unit of currency spent on ads brought in 4 units of revenue.
Calculate ROAS
ROAS Calculator
ROAS formula
ROAS = Revenue from ads รท Ad spend
Expressed as a percentage, multiply by 100: a 4.00x ROAS is 400%.
Example
A campaign costs $1,000 and the ad platform attributes $4,500 of sales to it. ROAS = 4,500 รท 1,000 = 4.50x (450%).
How to use the calculator
- Choose your currency (search by name or code).
- Enter total ad spend and the revenue attributed to those ads, for the same date range.
- Select Calculate ROAS.
What is a good ROAS?
It depends on your margins. ROAS measures revenue, not profit: a 3x ROAS can lose money for a low-margin store and be very profitable for a high-margin one. The number that matters is your break-even ROAS, the ROAS at which ad-driven revenue just covers product costs, fees and ad spend. Work it out with the break-even ROAS calculator.
ROAS vs ROI
ROAS compares revenue with ad spend only. ROI (return on investment) compares profit with the total investment, including product and operating costs. ROAS is quicker for comparing campaigns; ROI or net profit tells you whether the business made money. See the e-commerce profit calculator for the full picture.
Converting between ROAS formats
| Ratio | Percentage | Revenue per $1 spent |
|---|---|---|
| 2.00x | 200% | $2.00 |
| 3.50x | 350% | $3.50 |
| 0.80x | 80% | $0.80 (less revenue than spend) |
Some platforms show ROAS as a ratio and others as a percentage; they’re the same number.
Frequently asked questions
No. ROAS uses revenue and ad spend; ROI uses profit and total investment.
Yes. The formula is the same for any platform. Use the revenue and spend for the same period.
Ad platforms use their own attribution windows and models. Compare like with like, using one source for both numbers.
Related tools
More in Marketing Tools ยท All tools