📈 ROAS Calculator
ROAS = Revenue ÷ Ad Spend
Use our free ROAS calculator to calculate your return on ad spend instantly. This tool helps marketers measure how much revenue their ads generate for every dollar spent on advertising. Enter your ad spend and revenue to get your ROAS in seconds.
What is ROAS? The ROAS Formula Explained
ROAS stands for return on ad spend — a key metric that shows the effectiveness of your advertising efforts. ROAS tells you how much revenue you earn for each dollar spent on an advertising campaign.
The ROAS calculation formula is simple:
ROAS = Total Ad Revenue ÷ Total Ad Spend
For example, if you spent $1,000 on a campaign and generated $4,000 in revenue:
$4,000 ÷ $1,000 = 4.0 ROAS
A ROAS of 4 means that for every dollar spent on advertising, you earned $4 back. Use this ROAS calculator to quickly determine your campaign performance.
How to Calculate Your ROAS
To calculate your ROAS, you need two numbers:
- Total revenue from ads (conversions attributed to your campaign)
- Total ad spend (how much you spend on advertising)
Our ROAS calculator does the calculation automatically. Just enter your spend and revenue to see results. This metric helps you understand if your ads are profitable and worth scaling.
What is a Good ROAS?
A good ROAS is typically 4:1 or higher, meaning $4 revenue for every $1 spent. However, good return on ad spend depends on your business model and profit margin.
ROAS varies by industry and platform:
| Platform | Average ROAS |
|---|---|
| Google Ads | 2:1 – 4:1 |
| Facebook Ads | 3:1 – 5:1 |
| E-commerce | 4:1 – 6:1 |
| B2B | 2:1 – 3:1 |
A ROAS of 3 is considered decent for most businesses. A ROAS of 1.5 means you’re barely covering costs. Higher ROAS indicates stronger campaign profitability.
Break-Even ROAS — The Minimum You Need
Break-even ROAS is the minimum ROAS you need to cover your costs without losing money. Knowing your break-even ROAS helps you set realistic campaign goals.
To calculate the break-even point:
Break-Even ROAS = 1 ÷ Profit Margin
For example, if your profit margin is 25%:
1 ÷ 0.25 = 4.0 break-even ROAS
This means you need ROAS to cover at least 4:1 just to break even. Anything below is a loss; anything above generates profit. Use our free break even ROAS calculator to find your threshold.
ROAS vs ROI — What’s the Difference?
Both metrics measure return on investment, but they differ:
- ROAS focuses only on revenue vs advertising cost (doesn’t include other expenses)
- ROI calculator measures total profit including all business costs
ROAS is a quick metric for evaluating ad performance. ROI gives a complete picture of profitability. Most marketers track ROAS for campaign optimization and ROI for overall business performance.
Use the ROAS Calculator for Google Ads
Google Ads campaign performance depends heavily on ROAS. Track ROAS across your search, display, and shopping campaigns to identify winners.
For Google Ads:
- Search campaigns: 2-4 ROAS is typical
- Shopping campaigns: 4-8 ROAS is achievable
- Display campaigns: 1-3 ROAS is common
Use the ROAS calculator to compare your Google Ads results against these benchmarks.
Use the ROAS Calculator for Facebook Ads
Facebook Ads offer powerful targeting, but Facebook ad spend needs careful monitoring. ROAS helps you determine which ad sets drive revenue.
For Facebook Ads:
- Prospecting campaigns: 2-3 ROAS
- Retargeting campaigns: 5-10 ROAS
- Lookalike audiences: 3-5 ROAS
A low ROAS on Facebook often means your targeting or creative needs optimization. Use this ROAS calculator to monitor your paid ads performance.
How to Optimize and Improve Your ROAS
Strategies to achieve higher ROAS:
- Improve targeting to reach high-intent buyers
- Test ad creative to increase conversion rate
- Optimize landing pages for conversions
- Adjust bids based on ROAS data
- Focus ad budget on top-performing campaigns
ROAS depends on multiple factors. Track ROAS regularly and cut campaigns with consistently low ROAS. Scale what works to drive business growth.
ROAS Calculation for Different Campaign Types
ROAS metric applies to any advertising campaign:
- E-commerce: Track revenue from ads directly
- Lead generation: Assign value to leads for ROAS calculation
- Brand awareness: ROAS may be harder to measure directly
For online advertising campaigns, ROAS is the clearest metric of ad performance. Every specific advertising campaign should have ROAS targets based on your break-even point and profit goals.
Calculate Your Return on Ad Spend Now
Use our free ROAS calculator to:
- Calculate ROAS for any ad campaign instantly
- Determine your break-even ROAS based on profit margin
- Compare ROAS across different ad platforms
- Make data-driven decisions about your advertising budget
Whether you’re running a Google Ads campaign, Facebook Ads, or other paid ads, this calculator helps you understand if every dollar spent generates profitable returns.
FAQ
How do I calculate ROAS?
Divide total ad revenue by total ad spend. A result of 4 means you earn $4 for every $1 spent on advertising.
What is a good ROAS?
Good ROAS is typically 4:1 or higher. However, it depends on your business and profit margin. Some businesses profit at 2:1 ROAS.
What is break-even ROAS?
The minimum ROAS needed to cover costs. Calculate it by dividing 1 by your profit margin. If margin is 20%, break-even ROAS is 5.
ROAS vs ROI — which should I use?
Use ROAS for quick campaign evaluation. Use ROI for complete profitability analysis including all costs beyond advertising spend.
Why is my ROAS low?
Low ROAS may indicate poor targeting, weak ad creative, low conversion rate, or high advertising cost. Optimize each element to improve results.