ROAS Calculator
Calculate your Return on Ad Spend instantly. Enter any two values to find the third and see how your ROAS stacks up.
Enter any two values to calculate the third.
ROAS Formula
ROAS = Revenue ÷ Ad Spend
The formula can also be expressed as a percentage: ROAS% = (Revenue ÷ Ad Spend) × 100. You can rearrange it to find:
- Revenue = ROAS × Ad Spend
- Ad Spend = Revenue ÷ ROAS
ROAS Calculation Example
Your Google Ads campaign generated $12,000 in revenue from $3,000 in ad spend:
ROAS = $12,000 ÷ $3,000 = 4.0x (400%)
This means every $1 you spent on ads returned $4 in revenue. At 4x, this is generally considered a good ROAS, but whether it's profitable depends on your product margins.
ROAS Benchmarks
By Performance
Losing Money< 1x
Break-even1x – 3x
Good4x – 7x
Excellent8x+
By Industry (Avg)
E-commerce4:1
SaaS / Tech5:1
Finance6:1
Travel5:1
ROAS Calculator FAQ
What is ROAS?▾
ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent on advertising. A ROAS of 5x means you earn $5 in revenue for every $1 spent on ads.
How do you calculate ROAS?▾
The ROAS formula is: ROAS = Revenue from Ads ÷ Ad Spend. For example, if your ads generated $10,000 in revenue and you spent $2,000 on ads, your ROAS is $10,000 ÷ $2,000 = 5x (or 500%).
What is a good ROAS?▾
A common benchmark is 4:1 (400%), meaning $4 earned for every $1 spent. However, what's 'good' depends on your margins. A business with 80% margins can profit at 2x ROAS, while a business with 20% margins needs at least 5x. Use our break-even ROAS calculator for a precise target.
What is the difference between ROAS and ROI?▾
ROAS measures revenue per ad dollar spent. ROI (Return on Investment) measures profit after all costs. ROAS of 5x doesn't mean 5x profit — you still need to subtract product costs, shipping, overhead, etc. ROI gives you the true profitability picture.
How can I improve my ROAS?▾
1) Optimize ad targeting to reach high-intent audiences, 2) Improve landing page conversion rates, 3) Increase average order value with upsells, 4) Retarget warm audiences for higher conversion, 5) Cut underperforming campaigns and reallocate budget to winners.
Is ROAS the same as break-even ROAS?▾
No. ROAS is your actual return on ad spend. Break-even ROAS is the minimum ROAS you need to cover all costs and not lose money. Your actual ROAS should always be above your break-even ROAS for profitable advertising.