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Calculate Your Return on Ad Spend (ROAS)
ROAS (Return on Ad Spend) is one of the most important metrics for online advertisers. It tells you exactly how much revenue you earn for every dollar you spend on advertising.
How to Use This Calculator
Simply enter two numbers:
- Total Ad Spend: The total amount you spent on ads.
- Total Revenue: The total sales directly linked to those ads.
The calculator will instantly show your ROAS multiplier (e.g., 3.5x means you make $3.50 for every $1.00 spent).
The ROAS Formula
What is a Good ROAS?
ROAS benchmarks vary by industry, but here is a general guide:
- Under 1.0x: You are losing money (Negative ROI).
- 2.0x - 3.0x: Average. You are covering costs and making a small profit.
- 4.0x or higher: Profitable. This is the goal for most efficient campaigns.
ROAS vs. ROI
ROAS looks only at ad spend and revenue. ROI (Return on Investment) considers all costs (product costs, shipping, software, etc.). ROAS is best for optimizing day-to-day ad performance, while ROI is better for overall business health.
Frequently Asked Questions
Common questions about our ROAS Calculator.