ROAS CALCULATOR
- Enter your revenue and ad spend
- Add your consent rate details
- Get instant results
Frequently asked questions
ROAS, or return on ad spend, is a key marketing metric that is determined by measuring how much revenue you earn for every dollar spent on advertising. It helps businesses determine the effectiveness of their ad campaigns.
ROAS is calculated by dividing total ad revenue by total ad spend. This ROAS calculation formula helps advertisers measure campaign effectiveness.
The ROAS formula is:
ROAS = Revenue from Ads ÷ Ad Spend
For example, if you spent $500 on ads and earned $2,000 in revenue, your ROAS is 4.0 (or 400%).
A good ROAS depends on your industry, profit margins, and advertising costs. Generally:
- 1.0 or lower — losing money on ads
- 2.0 – 4.0 — average, depending on the industry
- 4.0+ — strong performance, especially for ecommerce
Enter your ad spend and revenue, along with details about your user consent rate. Our ROAS calculator online will show your return on ad spend calculation and suggest ways to improve it.
Several elements impact ROAS, including:
- Ad targeting & audience quality
- User consent rates (affect data accuracy)
- Ad creative & messaging effectiveness
- Landing page optimization
- Bidding strategy & cost per click (CPC)
Your target ROAS depends on your business goals and profit margins. A target ROAS calculator can help you set benchmarks based on revenue targets and ad budgets.