ROAS Calculator
Enter the revenue a campaign generated and what you spent on ads to see your return on ad spend instantly.
Return on ad spend, or ROAS, is revenue generated by advertising divided by the amount spent on that advertising. A ROAS of 4 means every $1 spent returned $4 in revenue. Expressed as a percentage it is that ratio times 100, so a ROAS of 4 is 400%.
How to Use This Calculator
Enter the revenue you can attribute to an advertising campaign, then enter what you spent to run it. The calculator returns your return on ad spend both as a ratio, such as 5:1, and as a percentage, such as 500%.
Use revenue and spend for the same campaign and time window. Mixing a month of revenue with a week of spend, or including sales that came from other channels, will inflate the figure and mislead you.
How the Calculation Works
ROAS is a simple ratio: the revenue an ad campaign produced divided by its cost. Because both numbers are in dollars, the ratio itself has no units — it tells you how many dollars came back for each dollar spent.
Multiplying by 100 turns the ratio into a percentage, which some teams prefer. A ratio of 5 and a percentage of 500% are the same result expressed two ways.
ROAS = revenue from ads ÷ ad spend
Worked Example
A campaign brings in $5,000 in attributed revenue and cost $1,000 in ad spend. Divide revenue by spend: 5,000 ÷ 1,000 = 5.
That is a ROAS of 5, often written 5:1, meaning every dollar spent returned five dollars of revenue. As a percentage it is 5 × 100 = 500%.
What the Result Means
A higher ROAS means the advertising is more efficient at turning spend into revenue. But ROAS measures revenue, not profit — a 5:1 ROAS on a product with a thin margin can still lose money once the cost of goods is counted.
To judge whether a campaign is truly worthwhile, compare ROAS against your break-even ROAS, which is one divided by your profit margin. If your margin is 20%, you need a ROAS above 5 just to cover the product cost.
Assumptions and Limitations
- Measures revenue return, not profit — it ignores cost of goods and overhead
- Only as accurate as your revenue attribution
- Revenue and spend must cover the same campaign and time period
- A good ROAS target depends entirely on your profit margin
Who Uses a ROAS Calculator
Marketers, e-commerce owners, and agencies use this to measure return on ad spend for a campaign, channel, or product. Enter revenue and ad cost to see the ratio and percentage, then decide which campaigns to scale, pause, or optimize. It is a core metric for anyone spending on Google, Meta, or Amazon ads who needs to know whether the spend is actually paying off.
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Open calculator →Frequently Asked Questions
What is a good ROAS?
It depends on your margins. A common rule of thumb is 4:1, but a business with thin margins may need much more, while one with high margins can profit at 2:1. Compare against your break-even ROAS, which is one divided by your profit margin.
What is the difference between ROAS and ROI?
ROAS compares revenue to ad spend only. ROI compares profit to total investment. ROAS is easier to track day to day, but ROI is the truer measure of whether the campaign made money.
How do I express ROAS as a percentage?
Multiply the ratio by 100. A ROAS of 5 is 500%. Both mean the same thing — five dollars of revenue for every dollar of ad spend.
Why is my ROAS high but I'm still not profitable?
Because ROAS ignores the cost of the product itself. If your margin is 15%, a 4:1 ROAS returns revenue but not enough gross profit to cover the goods plus the ad spend.
What is break-even ROAS?
It is the ROAS at which ad revenue exactly covers the product cost, equal to one divided by your profit margin. Above it the campaign is profitable; below it, it loses money.
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