Revenue from Ad Campaign
The total income generated directly as a result of the advertising campaign being measured.
ROAS Calculator (Return On Ad Spend)
Instantly calculate your Return On Ad Spend (ROAS) and compare it to industry benchmarks to see if your advertising is truly profitable.
Enter your revenue and cost to calculate your Return On Ad Spend.
How to Calculate ROAS?
Return On Ad Spend (ROAS) is a key performance indicator (KPI) used by marketers to measure the effectiveness of their advertising campaigns. It answers the simple question: "For every dollar I spend on ads, how many dollars do I get back in revenue?". While a 400% ROAS (a 4:1 ratio) is a common goal, understanding if your ROAS is profitable depends on your specific business margins.
The ROAS Formula:
ROAS (%) = (Revenue from Campaign / Total Ad Spend) * 100
FAQs
A good ROAS is generally considered to be a 4:1 ratio, or 400%. This means you generate $4 in revenue for every $1 of ad spend. However, true profitability depends on your margins; a low-margin business might need a 10:1 ROAS, while a high-margin business can thrive with a 3:1 ROAS.
A 300% ROAS, or a 3x ROAS, means that for every $1 you spend on advertising, you generate $3 in revenue. It's important to remember that this is revenue, not profit. To determine if a 300% ROAS is profitable, you must subtract your product costs and other overheads.
No, one is not better than the other because they measure different things. ROAS is a tactical metric for ad campaign efficiency (revenue vs. ad spend), while ROI is a strategic metric for overall business profitability (profit vs. total investment). A campaign can have a high ROAS but still have a negative ROI.
Key Terms for this Calculator
Total Ad Spend
The total amount of money spent on the advertising platforms (e.g., Google Ads, Facebook Ads) for a specific campaign.
Return On Ad Spend (ROAS)
A percentage that represents the gross revenue generated for every dollar spent on advertising. It is the primary metric for determining the profitability of ad campaigns.