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ROAS (Return on Ad Spend) Calculator

Instantly calculate ROAS (return on ad spend) from your ad-driven revenue and ad spend. See how much revenue each dollar of ad spend earns.

Input

$
$

Result

ROAS (return on ad spend)

500%

Revenue from ads

$500,000.00

Ad spend

$100,000.00

Revenue per $1 of ad spend

$5.00

ROAS (return on ad spend)500 %
Revenue from ads$500,000.00
Ad spend$100,000.00
Revenue per $1 of ad spend$5.00

How it works

  • ROAS (return on ad spend) is calculated as "ad-driven revenue ÷ ad spend × 100" and shows how much revenue your advertising generated relative to what you spent.
  • A ROAS of 100% means revenue equal to your ad spend, while 300% means three times your ad spend in revenue. The higher the number, the more efficient the advertising.
  • The key difference is that ROI is a ratio against profit (revenue minus cost of goods and other expenses), whereas ROAS is a ratio against revenue. For low-margin products, a high ROAS can still result in a loss.
  • Your target ROAS depends on your product's margin and cost. It is best to identify the break-even ROAS that accounts for your margin before setting a target.
  • Entering only ad-driven revenue measures the effect of advertising alone. To evaluate multiple channels together, align the scope of revenue and ad spend you enter.