ROAS Calculator
Enter your ad campaign's revenue and total ad spend to calculate ROAS (Return on Ad Spend) — a core metric for evaluating whether an advertising campaign is profitable.
How the ROAS formula works
The ROAS formula:
ROAS = Revenue from ads / Ad spend
Often expressed as a ratio (like 4:1) or as a multiple (4x), meaning $4 in revenue for every $1 spent.
Step-by-step calculation
- Divide total revenue attributed to the ad campaign by total ad spend.
- The result is your ROAS, often expressed as a ratio or multiplier.
Worked example
$20,000 in revenue from a campaign that cost $5,000 to run: ROAS = 20,000/5,000 = 4, commonly written as a 4:1 ROAS or '4x.'
Frequently asked questions
What's a 'good' ROAS?
It depends heavily on profit margins — a business with high margins can be profitable at a lower ROAS than one with thin margins, since ROAS alone doesn't account for the cost of goods sold. A commonly cited general benchmark is 4:1, but the right target varies significantly by business and industry.
How is ROAS different from ROI?
ROAS compares revenue to ad spend specifically, while ROI typically accounts for total costs (including product cost, not just ad spend) against total profit — ROAS can look strong even when overall ROI is thin, if product costs are high.