ROAS Calculator
Calculate your Return on Ad Spend and see if your campaigns are profitable!
Not sure what ROAS means? Read the guide below
Required Metrics
Optional Metrics
For deeper analysisPerformance Metrics
ROAS Analysis
Return on Ad Spend
4.00x
For every $1 spent, you get $4.00 back
Profit Analysis
How We Calculate Your ROAS
Here's how we calculate your Return on Ad Spend:
Revenue
Total revenue generated from your ad campaigns
Ad Spend
Total amount spent on advertising
ROAS
Your Return on Ad Spend
Profitable!
Tips & Insights
- 🚀 Excellent ROAS! Your campaigns are highly profitable. This is a great opportunity to scale aggressively.
Understanding ROAS
What is ROAS?
ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. It's calculated by dividing revenue from ads by the cost of those ads.
Formula: ROAS = Revenue from Ads ÷ Ad Spend
Example: If you spend $1,000 on ads and generate $4,000 in revenue, your ROAS is 4x (or 400%).
ROAS Benchmarks
- Below 1x: You're losing money on every sale
- 1x - 2x: Breaking even or minimal profit
- 2x - 4x: Healthy profit margins for most businesses
- Above 4x: Excellent performance, room to scale
Break-even ROAS
Your break-even ROAS is the minimum ROAS needed to cover your costs. It depends on your profit margin.
Formula: Break-even ROAS = 1 ÷ Profit Margin
Example: With a 25% profit margin, you need a 4x ROAS to break even (1 ÷ 0.25 = 4).
ROAS vs ROI
ROAS measures revenue return: $4 revenue from $1 spend = 4x ROAS
ROI measures profit return: $3 profit from $1 spend = 300% ROI
ROI = (Revenue - Cost) ÷ Cost × 100
Key Metrics Explained
CPC (Cost Per Click): How much you pay for each click on your ads
CPA (Cost Per Acquisition): How much it costs to acquire one customer
AOV (Average Order Value): The average amount customers spend per order
Conversion Rate: Percentage of clicks that result in a purchase