ROAS Calculator
Calculate return on ad spend (ROAS) to understand how efficiently your advertising budget is generating revenue.
ROAS
4:1
Percentage return
400.0%
Net return
$6,000.00
For every $1 spent on ads, you generated $4.00 in revenue.
What Your Result Means
A ROAS of 4:1 means every $1 spent on advertising generated $4 in revenue. Higher ROAS generally means more efficient ad spend, though what counts as "good" varies significantly by industry and profit margin.
How It Is Calculated
ROAS = Revenue Attributed to Advertising / Advertising Cost
Calqora also expresses this ratio as a percentage return for easier comparison to ROI.
Worked Example
You spend $2,000 on ads and generate $8,000 in attributed revenue. ROAS = $8,000 / $2,000 = 4, or 4:1 - meaning a 300% percentage return.
Important Assumptions
- ROAS measures revenue, not profit - it does not subtract product or fulfillment costs.
- Assumes the revenue entered is accurately attributed to the ad spend, which depends on your tracking setup.
Frequently Asked Questions
- What's a good ROAS?
- It depends heavily on your profit margins. A business with thin margins may need a ROAS of 4:1 or higher to be profitable, while high-margin businesses can be profitable at lower ROAS.
- How is ROAS different from ROI?
- ROAS compares revenue to ad spend only. ROI typically factors in total costs (including product cost), giving a fuller picture of profitability.
Related Calculators
Methodology
This calculator uses the standard ROAS formula used throughout digital marketing. See our methodology page for details.
Results depend entirely on the assumptions and figures you enter. Actual business performance may differ. This calculator does not provide accounting, tax, or legal advice.