ROAS calculator
This calculator needs JavaScript. The formula and the worked example on this page show how it works.
Result
Enter a value above 0 in each field.
Formula
ROASROAS (return on ad spend)The revenue a campaign earns for each dollar spent on ads. Glossary = revenue from ads / ad spend
As a percentage: ROAS x 100
How do you calculate ROAS?
ROAS stands for returnReturnA buyer's request for credit on a lead that fails agreed standards, such as a disconnected number, a duplicate or a lead outside the filters. Glossary on ad spend. The formula is revenue from ads divided by ad spend. The result is a ratio: the revenue you earned for each dollar spent on ads. Multiply the ratio by 100 to show it as a percentage.
Use only the revenue the ads produced. If some sales came from other channels in the same period, leave them out, or the ROAS will look higher than the ads earned.
Example (made-up numbers)
Revenue from ads of $4,000 and ad spend of $1,000: $4,000 / $1,000 = 4.00:1.
As a percentage: 4.00 x 100 = 400%.
Read it as $4.00 of revenue for every $1.00 of ad spend.
How to use the ROAS calculator
- Enter the revenue from ads for the campaign and date range you are checking.
- Enter the ad spend for the same campaign and date range, with fees counted the same way each time.
- Read the ratio and the percentage as you type.
- Use Copy result to paste the figures into a report, or Clear inputs to start again.
If you are a publisherPublisherA company or individual that generates leads, usually through websites, ads or content, and sells them to brokers or buyers. Glossary paid per lead or on a revenue share, your revenue from ads is the amount you were paid for the leads those ads produced. Use the amount after returns, so the ROAS reflects what you kept.
How to read the result
A ROAS of 1.00:1 means the ads brought back exactly what they cost in revenue. That is not the same as breaking even. Revenue still has to cover other costs, such as the cost of the product, the service, tools and staff.
To find the ROAS at which a campaign stops losing money, use the break-even ROAS calculator. It works from your profit margin. Compare your actual ROAS with that break-even figure: above it, the ads are profitable; below it, they are not.
ROAS does not show profit in dollars. To see the return after all marketing costs, and after cost of goods if you want, use the marketing ROI calculator.
Common ROAS mistakes
- Treating ROAS as profit. ROAS uses revenue, not profit. A high ROAS on a low-margin product can still lose money.
- Counting revenue the ads did not produce. Repeat customers, referrals and other channels inflate ROAS if they land in the same report.
- Using revenue before returns or refunds. Revenue that is later credited back was never earned. Use the net figure.
- Comparing ROAS across different attribution windows. A longer window counts more sales. Use the same window for every campaign you compare.
- Mixing up the ratio and the percentage. They show the same result. A ratio of 4.00:1 is a percentage of 400, not 4.
Embed this calculator
You can add this ROAS calculator to your own site. Copy the code below and paste it into your page. It loads the calculator in a frame and includes a credit link to this page.
Frequently asked questions
How do you calculate ROAS?
Divide the revenue from your ads by your ad spend. Multiply the result by 100 if you want it as a percentage.
What is the difference between ROAS and ROI?
ROAS divides revenue by ad spend. ROI subtracts costs from revenue first and then divides by the cost, so it shows profit rather than revenue. The marketing ROI calculator works out ROI.
What is a good ROAS?
It depends on your profit margin. A good ROAS is one above your break-even ROAS, which the break-even ROAS calculator works out from your margin.
Why does the calculator show a ratio and a percentage?
Ad platforms and reports use both. The ratio and the percentage are the same number written two ways, so you can match whichever format your report uses.
Related tools
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