ROAS Calculator
Measure your return on advertising spend (ROAS). Enter total revenue generated from ads and total ad spend to calculate ROAS as a multiplier, percentage gain, net profit, and cost per dollar of revenue.
Enter total revenue generated from advertising and total ad spend to calculate your return on advertising spend (ROAS).
Total sales from this advertising campaign or period
Total spent on advertising channels
Formula
ROAS = Revenue from Ads ÷ Ad Spend | ROAS Percentage Gain = (ROAS − 1) × 100% | Cost per $1 Revenue = Ad Spend ÷ Revenue
ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent on advertising. A ROAS of 4× means $4 in revenue per $1 spent. A ROAS of 1× means breakeven. ROAS below 1× indicates a loss. ROAS is a key metric for evaluating campaign profitability.
Worked Example
Total revenue from ads: $50,000 · Total ad spend: $10,000
Revenue: $50,000
Ad spend: $10,000
ROAS: $50,000 ÷ $10,000 = 5×
ROAS as percentage gain: (5 − 1) × 100% = 400%
Net profit: $50,000 − $10,000 = $40,000
Cost per $1 revenue: $10,000 ÷ $50,000 = $0.20
A 5× ROAS is excellent — your ads are highly profitable. For every dollar spent on advertising, you earned $5 in revenue. This leaves plenty of room for other business costs while maintaining healthy profit margins.
Frequently Asked Questions
When to use this calculator
- →Measuring the profitability of a current or completed advertising campaign
- →Comparing ROAS across different marketing channels (Google, Facebook, TikTok, etc.)
- →Evaluating campaign performance against your breakeven ROAS threshold
- →Tracking ROAS over time to identify trends and optimization opportunities
Common mistakes
- ✕Using only the ROAS multiplier without checking if it exceeds your breakeven ROAS — high ROAS can still be unprofitable after costs
- ✕Including revenue from organic (non-ad) sources in your "revenue from ads" — ROAS must isolate ad-driven sales
- ✕Comparing ROAS across channels without accounting for time period — daily ROAS fluctuates; use monthly or campaign totals for reliable comparison
- ✕Forgetting to attribute sales accurately — ensure your ad platform and analytics correctly track which revenue came from each channel
Responsible use note
ROAS measures revenue impact, not profit. A high ROAS does not guarantee profitability if your product costs or other overhead are not accounted for. Always compare actual ROAS to your breakeven ROAS to confirm true profitability. This is for analysis purposes only and not financial or investment advice.
Frequently asked questions
How do I know which revenue to count?
Count only revenue directly attributed to the advertising campaign you are measuring. Use UTM parameters, tracking pixels, or your ad platform's conversion tracking to ensure accuracy. Exclude organic sales, direct traffic, and sales from other channels.
Should I include refunds in my revenue?
Ideally, use net revenue (after refunds and returns). This gives a true picture of actual revenue collected. Some businesses count gross revenue instead — be consistent for comparison purposes.
How often should I calculate ROAS?
Calculate ROAS at campaign end or milestone. Daily or weekly ROAS fluctuates due to sample size. A 7–30 day period is typical for reliable ROAS measurement. Some businesses monitor daily ROAS for optimization but use weekly/monthly for decisions.
What if my ROAS is 0.5× — what does that mean?
ROAS of 0.5× means you earned $0.50 in revenue per $1 spent on ads — a 50% loss. For every $100 spent, you only earned $50. This campaign is unprofitable and needs optimization or should be stopped.
How do I use ROAS to decide which ads to keep?
Keep or expand ads with ROAS above your breakeven threshold. Optimize or pause ads with ROAS below breakeven. If all channels are below breakeven, review product pricing, landing pages, or targeting before scaling.
Is ROAS the same as conversion rate?
No. Conversion rate = (conversions ÷ clicks) × 100%. ROAS = revenue ÷ ad spend. Conversion rate measures click-to-sale efficiency; ROAS measures revenue impact per dollar spent. Both matter for different purposes.