Return on Ad Spend (ROAS) Calculator

Ready to find out your campaign’s return on ad spend?

Use our free calculator to enter in your investment and return. The ROAS formula will calculate automatically!

Frequently asked questions

Return on ad spend (ROAS) is a metric that measures the profitability of an advertising campaign. In other words, it tells you how much revenue your ads generate for every dollar you spend on them.

A ROAS of 2.5, for example, means that for every $1 you spend on ads, you generate $2.50 in revenue.

Generally speaking, a higher ROAS is better than a lower one. However, there is no “perfect” ROAS that all businesses should aim for. The right ROAS for your business will depend on factors like your margins, your average order value, and your overall business goals.

ROAS and ROI are often used interchangeably, but they’re actually two different metrics.

ROAS measures the profitability of an advertising campaign, while ROI measures the overall profitability of a business or investment.

In other words, ROAS tells you how much revenue your ads generate for every dollar you spend on them. ROI, on the other hand, tells you how much profit you make for every dollar you invest in your business.

Both metrics are useful for assessing your business’s or advertising campaigns’ performance. However, ROAS is generally more relevant when it comes to measuring the success of an ad campaign ad, while ROI is more relevant when it comes to assessing the overall profitability of a business.

There is no “perfect” ROAS that all businesses should aim for. The right ROAS for your business will depend on factors like your margins, your average order value, and your overall business goals.

However, the higher the better!

You can either increase your revenue or reduce your advertising costs.