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ROAS Calculator

Return on Ad Spend is the most-watched number in paid media: revenue generated divided by what was spent to generate it.

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ROAS

4.00x

What This Means

Compare this against your Break-Even ROAS, not against 1.0, to know whether a campaign is actually creating or destroying value.

Want the full picture, not just this one number?

Try the Ad Performance Calculator

The Formula

ROAS = Revenue From Ads / Ad Spend

Why It Matters

ROAS on its own says nothing about profitability, which is why it should always be read against Break-Even ROAS rather than a flat target like 1.0 or an arbitrary company-wide goal. A campaign posting a 3x ROAS can still be losing money if margins are thin, while a 2x ROAS can be strongly profitable on a high-margin product.

Example

A campaign spends $3,000 and generates $12,000 in attributed revenue. ROAS is $12,000 divided by $3,000, which equals 4x.

Frequently Asked Questions

  • It depends entirely on gross margin. The only universally correct answer is that it needs to clear Break-Even ROAS for that specific product, not a generic industry number.

  • No. ROAS is usually reported per platform or campaign based on that platform's own attribution. Marketing Efficiency Ratio (MER) looks at total revenue against total spend across every channel, a more blended view.

Related Calculators

Break-Even ROAS CalculatorMarketing Efficiency Ratio (MER) Calculator

From the Glossary

Return on Ad Spend (ROAS)Break-Even ROAS
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