ROAS (Return on Ad Spend) is the most critical metric for online advertisers. It answers the simple question: "For every dollar I spend on ads, how much money do I make back?" This tool helps you instantly calculate your ROAS, along with your ROI (Return on Investment) and total profit, giving you a clear picture of your campaign's health.
Whether you are running Facebook Ads, Google Ads, or email marketing campaigns, knowing your numbers is the key to scaling. A ROAS of 1.0x means you are breaking even (revenue equals ad spend). Anything above that is positive revenue. This calculator takes your ad spend and total revenue and does the math for you, including a visual breakdown of cost versus profit.
How to Use the Tool
- Enter Ad Spend: Input the total amount of money you spent on the campaign (e.g., 0).
- Enter Revenue: Input the total value of sales or conversions generated by that campaign (e.g., ',000).
- View Results: The tool instantly calculates your ROAS multiplier (e.g., 4.0x), your percentage return, and your actual net profit in dollars.
Frequently Asked Questions
What is the ROAS formula?
The formula for ROAS is simple: ROAS = Total Revenue / Total Ad Spend. For example, if you spend ,000 and make ,000, your ROAS is 5. This is often written as 5.0x or 500%.
What is a "good" ROAS?
A "good" ROAS depends on your profit margins. Generally, a ROAS of 4.0x (400%) is considered very good for e-commerce. However, if you have high product costs, you might need a 5.0x ROAS to be profitable. If you sell digital products with low costs, a 2.0x ROAS might be highly profitable.
What is the difference between ROAS and ROI?
ROAS looks at gross revenue generated from ad spend. ROI (Return on Investment) looks at profit relative to the cost.
ROAS = Revenue / Cost.
ROI = (Revenue - Cost) / Cost.
What is a Break-Even ROAS?
Your Break-Even ROAS is the minimum ROAS you need to cover your product costs and ad spend without losing money. For example, if your profit margin is 50%, your Break-Even ROAS is 2.0x. You need to make ' for every spent just to cover the cost of the item and the ad.
Does this calculator save my data?
No. This tool works entirely in your browser using JavaScript. Your financial data is never sent to our servers or stored anywhere.
