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ROAS Calculator (Return on Ad Spend)

Calculate your Return on Ad Spend (ROAS) to measure the effectiveness of your advertising campaigns. Know exactly how much revenue each dollar of ad spend generates.

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Fill in the fields above and click Calculate to see your results.

How to use

Calculate your Return on Ad Spend (ROAS) to measure the effectiveness of your advertising campaigns. Know exactly how much revenue each dollar of ad spend generates.

How it's calculated

ROAS

ad_revenue / ad_spend

Revenue generated per unit of ad spend (e.g., 5x means $5 revenue per $1 spent)

Break-Even ROAS

100 / gross_margin_percent

Minimum ROAS needed to cover product costs

Ad Campaign Profit

ad_revenue * gross_margin_percent / 100 - ad_spend

Profit after product costs and ad spend

Ad Spend Ratio (MER)

ad_spend / ad_revenue * 100

Ad spend as a percentage of revenue

Examples

Facebook Ads campaign for e-commerce

  • Total Ad Spend:10,000,000
  • Revenue from Ads:50,000,000
  • Product Gross Margin:40

Frequently Asked Questions

What is a good ROAS?

A good ROAS depends on your profit margin. Use the break-even ROAS as your floor — anything above it is profitable. For a 40% margin product, break-even ROAS is 2.5x. Most e-commerce businesses target 3–5x ROAS.

What is the difference between ROAS and ROI?

ROAS measures revenue generated per dollar of ad spend (ignoring product costs). ROI measures profit after all costs including product cost and ad spend. ROAS is useful for optimizing campaigns; ROI tells you if the campaign is actually profitable.

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