ROAS Calculator
Find out how much revenue you earn per dollar of ad spend. Fill any two fields and the calculator solves the third - revenue, spend, or ROAS.
How ROAS is calculated
ROAS = Revenue / Ad spendROAS (return on ad spend) tells you how many dollars of revenue you earn for every dollar spent on ads. A ROAS of 4x means $4 back for every $1 spent.
Unlike ROI, ROAS ignores profit margins and only compares gross revenue to ad spend. This makes it a fast, platform-agnostic signal - but always pair it with margin data to know whether the campaign is actually profitable.
What counts as a "good" ROAS depends heavily on your margins. A business running on 30% margins needs a higher ROAS to break even than one running on 60% margins.
- Revenue
- Total sales generated and attributed to the ad campaign.
- Ad spend
- Total amount paid for ads in the same period.
- ROAS
- Revenue earned per dollar of ad spend (shown as a multiplier, e.g. 4x).
Common questions
What is a good ROAS?
It depends on your margins. A 4x ROAS is a common starting benchmark, but a high-margin product might be profitable at 2x while a low-margin product needs 8x or more to break even.
How is ROAS different from ROI?
ROAS compares revenue to ad spend only. ROI factors in all costs (product, fulfillment, overhead) and measures profit, not revenue. Both are useful - ROAS for campaign-level speed checks, ROI for full business profitability.
Can ROAS be negative?
Not in the standard formula, since both revenue and spend are positive. But if your revenue is lower than your spend, your ROAS will be less than 1x, meaning you lost money on the campaign.
Should I optimize for ROAS or CPA?
Use ROAS when your goal is revenue and conversion values vary (e.g. different product prices). Use CPA when you have a fixed value per conversion and want a consistent cost target.