Free marketing calculator
ROAS Calculator
Calculate return on ad spend, profit after ad spend, profit margin, and the revenue needed to hit your target ROAS.
ROAS Calculator
Calculate return on ad spend, profit after ads, and profit after product or operating costs.
Total amount spent on advertising.
Revenue generated from the ad spend.
Cost of goods sold tied to the revenue.
Additional costs such as fees, shipping, or fulfillment.
Target Revenue Calculator
Work backward from ad spend and target ROAS to find the revenue you need.
Planned or actual ad spend.
Desired return on ad spend as a ratio.
Required Revenue
$4,000.00
Required revenue = ad spend x target ROAS.
Guide
Understanding ROAS
What is ROAS?
ROAS stands for return on ad spend. It shows how much revenue a campaign generates for each dollar spent on advertising.
ROAS Formula
ROAS = Revenue / Ad Spend
Profit After Ad Spend = Revenue - Ad Spend
Profit After All Costs = Revenue - Ad Spend - COGS - Other Costs
Profit Margin % = Profit After All Costs / Revenue x 100
Required Revenue = Ad Spend x Target ROAS
How to Calculate ROAS
Divide revenue by ad spend. If a campaign spends $1,000 and generates $4,000 in revenue, ROAS is 4.00x. That means the campaign generated $4 for every $1 spent.
What is a Good ROAS?
A good ROAS depends on your product margin, fulfillment costs, and growth goals. Use the Profit Margin Calculator to understand how much room you have for ad spend.
ROAS vs ROI
ROAS compares revenue to ad spend. ROI compares profit to total investment. ROAS is useful for campaign efficiency, while ROI is better for understanding overall profitability.
ROAS vs CPA
ROAS measures revenue generated per dollar spent. CPA measures the cost to acquire one customer or conversion. Use the CPA Calculator when acquisition cost matters more than revenue ratio.
Break-Even ROAS Explained
Break-even ROAS is the minimum ROAS needed to cover ad spend and costs without losing money. For deeper margin-based planning, compare this calculator with the Break-Even ROAS Calculator and Target ROAS Calculator.
How to Improve ROAS
Improve ROAS by increasing conversion rate, raising average order value, reducing wasted spend, improving creative quality, and protecting profit margins with better pricing or lower variable costs.
Frequently Asked Questions
Is ROAS the same as profit?
No. ROAS compares revenue to ad spend, while profit also accounts for product costs, fees, fulfillment, and other expenses.
Can ROAS be below 1?
Yes. A ROAS below 1 means revenue is lower than ad spend before other costs are considered.
Should I include costs in ROAS?
The basic ROAS formula only uses revenue and ad spend, but including COGS and other costs helps you understand profit after advertising.