ROAS Calculator: Calculate Your Return on Ad Spend
Calculate your Return on Ad Spend (ROAS) instantly. Enter your revenue and ad spend to measure how effectively your advertising generates revenue.
Enter values to calculate
Improve your ROAS with high-converting ad creatives
Create scroll-stopping ad visuals in seconds with AI
What is ROAS?
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising. It's a crucial metric for evaluating the effectiveness of your ad campaigns.
ROAS Formula
ROAS = Revenue from Ads ÷ Ad SpendROAS Benchmarks by Industry
Acceptable ROAS varies by margin and sector:
- E-commerce: 4:1 ($4 revenue per $1 spent) is considered good
- SaaS/Subscriptions: 3:1 is acceptable due to recurring revenue
- Luxury/High-ticket: 2:1 can be sufficient with high margins
- Low margin: 8:1+ required to stay profitable
Frequently Asked Questions
What is a good ROAS?
A good ROAS depends on your margin. Generally, 4:1 (400%) is considered good. If your margin is 25%, you need at least 4:1 to be profitable.
ROAS vs ROI: What's the difference?
ROAS only measures return on ad spend. ROI accounts for all costs (product, operations, etc.). A 4:1 ROAS doesn't mean 300% ROI.
How can I improve my ROAS?
Optimize targeting, test creatives, improve landing pages, exclude non-performing audiences, and increase average order value.
What minimum ROAS should I target?
Minimum ROAS = 1 ÷ Margin. With 25% margin, target at least 4:1. With 50% margin, 2:1 breaks even.
Does ROAS include all sales?
ROAS only counts sales attributed to ads. Organic sales, email, or returning customers are not included.
Related Tools
Ready to boost your marketing?
Create scroll-stopping ad visuals in seconds with AI
Try DesignDads Free