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ROAS Calculator

Calculate Return on Ad Spend and measure campaign profitability with our free ROAS calculator

Profitability Metric

ROAS directly measures how much revenue your ads generate per dollar spent.

Budget Decisions

Use ROAS to allocate budget to your most profitable campaigns.

Channel Comparison

Compare ROAS across channels to optimize your marketing mix.

What is ROAS?

ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. It's one of the most important metrics for e-commerce and performance marketing, directly indicating campaign profitability.

ROAS Formula

The ROAS formula is:

ROAS = Revenue from Ads / Ad Spend

A ROAS of 4.0 means you generate $4 in revenue for every $1 spent on ads.

ROAS vs ROI: What's the Difference?

  • ROAS: Measures gross revenue relative to ad spend only
  • ROI: Measures net profit relative to total investment (including product costs, overhead, etc.)

What's a Good ROAS?

Benchmark ROAS varies by industry and business model:

  • E-commerce (general): 4:1 (400%)
  • Fashion/Apparel: 3:1 to 4:1
  • Electronics: 5:1 to 8:1
  • Luxury Goods: 6:1 to 10:1
  • Break-even: Typically 2:1 to 3:1 depending on margins

How to Improve Your ROAS

  1. Focus on high-intent keywords and audiences
  2. Improve conversion rate on landing pages
  3. Increase average order value (AOV) with upsells
  4. Use value-based bidding strategies
  5. Implement proper conversion tracking
  6. Retarget high-value customer segments

Ready to calculate your ROAS?