Evaluate your marketing efficiency instantly. Calculate Return on Ad Spend, profit margins, and campaign performance across all advertising platforms.
In the world of digital marketing, data is king. If you aren't tracking your Return on Ad Spend (ROAS), you're essentially flying blind. Our ROAS Calculator is a professional-grade tool designed for media buyers, e-commerce owners, and marketing agencies to instantly determine the effectiveness of their advertising campaigns. Whether you're running Facebook Ads, Google PPC, or TikTok campaigns, knowing your ROAS is the first step toward scaling profitably.
ROAS measures the amount of revenue your business earns for every dollar it spends on advertising. Unlike general ROI, which looks at the big picture of business profitability, ROAS is a specific metric used to evaluate the performance of a particular ad campaign, ad set, or even a single creative.
High ROAS indicates that your messaging and targeting are resonating with your audience, while a low ROAS suggests it's time to optimize your funnel or rethink your ad spend. By using our ad performance tool, you can quickly identify which campaigns are winners and which are draining your budget.
The math behind ROAS is straightforward, but the insights it provides are invaluable. The standard formula used by our calculator is:
For example, if you spend $1,000 on ads and generate $5,000 in revenue, your ROAS is 5.0x (or 500%). This means for every $1 you put in, you get $5 back.
Our calculator goes beyond simple ratios. By entering your total conversions, you can also track:
Understanding these metrics helps you determine your "Break-even ROAS." If your product costs $20 to make and you sell it for $100, you have $80 of margin. Your break-even ROAS would be 1.25x. Anything above that is profit.
Just as our Freelance Rate Calculator helps professionals value their time, the ROAS Calculator helps businesses value their marketing dollars.
A "good" ROAS depends on your profit margins. For many e-commerce businesses, a 4:1 ROAS is considered successful. However, if your margins are very high, a 2:1 might be profitable. If your margins are thin, you might need a 10:1 ROAS to stay in business.
ROAS only looks at the revenue generated per dollar spent on ads. ROI (Return on Investment) is a broader metric that subtracts all costs (product, shipping, labor, software) from the revenue to show true business profit.
Absolutely. This calculator is platform-agnostic. As long as you have your total spend and total revenue figures, it will work for any advertising channel.