ROAS Calculator

How to Calculate ROAS

Return on Ad Spend is calculated using these formulas:

ROAS is a key metric that helps marketers understand the effectiveness of their advertising campaigns and optimize their ad spend.

What is a Good ROAS?

A good ROAS depends on your industry and business model, but generally:

• A ROAS of 1:1 means you're breaking even
• A common target ROAS is 4:1 ($4 in revenue for every $1 spent on ads)
• E-commerce businesses typically aim for 3:1 to 5:1
• Industries with high customer lifetime value might accept lower initial ROAS

Your target ROAS should consider your profit margins, overhead costs, and business goals.

How to Use This Calculator

1. Enter your total ad spend (the amount you spent on advertising)
2. Enter the revenue generated from those ads
3. Click "Calculate" to see your ROAS as both a ratio and a percentage

Use these results to evaluate your advertising performance and make data-driven decisions about your marketing budget allocation.