ROAS Calculator
Calculate your return on advertising spend instantly. Enter your advertising cost and revenue to find your ROAS quickly and accurately.
Calculate Your ROAS
What Is ROAS?
ROAS stands for Return on Advertising Spend. It measures how much revenue is generated for every unit of money spent on advertising.
ROAS is commonly used by advertisers and businesses to evaluate the revenue generated by paid advertising campaigns.
ROAS Formula
The ROAS formula is:
Divide the revenue attributed to your advertising campaign by the amount spent on that advertising.
ROAS Calculator Example
Revenue from Ads: $5,000
Advertising Spend: $1,000
ROAS = $5,000 ÷ $1,000
ROAS = 5×
This means the campaign generated $5 in attributed revenue for every $1 spent on advertising.
How to Calculate ROAS
1. Enter your advertising revenue
Enter the revenue attributed to your advertising campaign.
2. Enter your advertising spend
Enter the total amount spent on the advertising campaign.
3. Calculate your ROAS
Click the Calculate ROAS button. The calculator divides advertising revenue by advertising spend and displays the result as a ratio.
Why Is ROAS Important?
ROAS can help businesses evaluate the revenue generated by advertising relative to advertising costs. It can be useful when comparing campaigns, channels and advertising strategies.
ROAS does not represent profit by itself because it does not include other business expenses such as product costs, salaries, shipping, taxes or overhead.
ROAS vs ROI
ROAS focuses specifically on revenue generated from advertising compared with advertising spend. ROI measures the overall return from an investment after considering relevant costs.
For advertising analysis, ROAS can be useful for understanding the relationship between ad revenue and ad spend, while ROI provides a broader view of profitability.
ROAS Calculator FAQs
What does ROAS mean?
ROAS means Return on Advertising Spend. It measures the revenue generated for each unit of money spent on advertising.
How do you calculate ROAS?
Divide revenue from advertising by advertising spend. The formula is ROAS = Revenue from Ads ÷ Advertising Spend.
What does a 5× ROAS mean?
A 5× ROAS means the campaign generated $5 in attributed revenue for every $1 spent on advertising.
What is a good ROAS?
There is no universal good ROAS. The target depends on profit margins, operating costs, business model, industry and advertising goals.
Is ROAS the same as ROI?
No. ROAS compares advertising revenue with advertising spend, while ROI considers the broader return from an investment and its relevant costs.
Can I use this ROAS calculator for Google Ads?
Yes. You can use it to calculate ROAS for Google Ads and other advertising campaigns when you know the attributed revenue and advertising spend.