Instantly Calculate Your ROAS
How to use a ROAS calculator
ROAS (Return on Ad Spend) is your north star when it comes to evaluating how your ads are doing. This calculator will tell you exactly how much revenue you earn for every dollar spent on ads.
Add the total revenue generated
Input the total revenue generated from your ad campaign across all channels and touchpoints.
Input the total amount spent
Enter the total amount spent on the ad campaign including all advertising costs.
Hit calculate!
The result shows your ROAS. Compare with break-even ROAS for a profitability check.
Understanding Return on Ad Spend (ROAS)
ROAS is one of the first metrics you'd encounter as a newbie marketer, and for good reason - it is a fundamental tenet of performance marketing.
We like to think of ROAS as the scoreboard for marketing bets. What we mean is, your ROAS can tell if your ad spend is paying off–much like placing a bet. If you're betting on horses, then you can think of each horse as a different ad campaign - ROAS shows you which horses are worth doubling down on, and which ones to pull out of the race! 🐎
This is all you need to know:
High ROAS? You're scaling profitably. Low ROAS? You're burning cash.
Performance Tracking
Monitor how well your advertising investments are converting into revenue.
Campaign Optimization
Identify which campaigns deliver the best returns and optimize accordingly.
Budget Allocation
Make data-driven decisions about where to invest your advertising budget.
ROAS vs. ROI — Know the Difference
Marketers will often get these two mixed up, and many believe they aren't different at all. But they are! They just serve slightly different purposes.
ROAS
ROAS is solely concerned with ad spends, and nothing else. It reflects how well your ad spend is translating into revenue.
ROI
ROI considers the total investment, not just ad spend. That includes product costs, tools, salaries, and any other expenses tied to the campaign.
How to Calculate ROAS
ROAS Formula:
Calculating your ROAS is no big deal - it's a very simple ratio:
ROAS = Total Revenue from Ads ÷ Total Ad Spend
For example:
If you spent $3,000 and generated $12,000 in revenue → ROAS = 4.0 (or 400%)
Sample ROAS Data
| Total Ad Spend | Revenue Generated | ROAS | Profitability |
|---|---|---|---|
| $500 | $2,000 | 4.0 | Excellent margin |
| $1,000 | $1,000 | 1.0 | Break-even |
| $2,000 | $2,400 | 1.2 | Low-margin profit |
| $1,500 | $3,000 | 2.0 | Moderate profit |
| $3,000 | $9,000 | 3.0 | Strong return |
How to Calculate Break-even ROAS
A 'break-even' ROAS is just the ROAS you need to not lose money on your campaign. If you go higher than the break-even value, you're profitable.
Break-even ROAS = 1 ÷ Profit Margin
For example: Let's say your profit margin is 25%.
Then your break-even ROAS = 1 ÷ 0.25 = 4.0
That means you need $4 in revenue for every $1 in ad spend, to break even.
Why Break-even ROAS Matters
Your break-even ROAS value will put things into perspective. It's like the line in the sand that you cannot cross; because if you go lower, you're making your ad budget effectively worthless and not earning any money.
Prevent Overspending
Helping you avoid scaling unprofitable campaigns before they drain your budget.
Set CAC Targets
Lets you reverse-engineer customer acquisition cost goals for better planning.
Optimize Bidding
Bid more confidently when you know the ROAS to hit to stay profitable.
Essential for SaaS/eCommerce
These models often rely on slim margins, making break-even ROAS critical for campaign planning.
Benchmarks & Goals for ROAS
What Is a Good ROAS?
A 'good' ROAS depends on what your profit margins are, what your business model is, and the way in which you monetize. That said, here are some benchmarks to give you a clearer idea:
| Industry | Target ROAS |
|---|---|
| E-commerce | 2x – 3x |
| Info Products / Courses | 5x – 7x |
| SaaS | 3x – 5x (LTV-based) |
| High-ticket Services | 4x – 8x |
| Consumer Packaged Goods (CPG) | 1.5x – 2.5x |
Factors That Influence ROAS:
Ad Quality & Relevance
The better the copy & creatives, the better the clickthrough rate and conversions.
Targeting Precision
Broad vs. hyper-targeted audiences can significantly shift your campaign performance.
Landing Page Performance
Slow load times, bad UX? Say goodbye to conversions and hello to wasted ad spend.
