ROAS formula
ROAS = Revenue / Ad SpendBreak-even ROAS = 1 / Profit Margin For break-even ROAS, use profit margin as a decimal. For example, 25% profit margin is 0.25.
Free PPC calculator
ROAS Calculator
Calculate return on ad spend from revenue and ad spend. Add profit margin to estimate break-even ROAS and see whether the result is above or below break-even.
Result
ROAS result
- ROAS Ratio
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- ROAS Percentage
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- Break-even ROAS
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- Profitability Status
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Example
If revenue is $10,000 and ad spend is $2,500, ROAS is 4.0x or 400%.
FAQ
ROAS Calculator FAQ
What is ROAS?
ROAS means return on ad spend. It compares revenue generated by advertising with the amount spent on those ads.
How do you calculate ROAS?
To calculate ROAS, divide revenue by ad spend. For example, $10,000 in revenue divided by $2,500 in ad spend equals 4.0x ROAS.
What is a good ROAS?
A good ROAS depends on your margins, business model, channel, and growth goals. Start by comparing your ROAS with your break-even ROAS.
What is break-even ROAS?
Break-even ROAS is the minimum ROAS needed to cover ad spend based on profit margin. With a 25% margin, break-even ROAS is 4.0x.
What is the difference between ROAS and ROI?
ROAS focuses on revenue compared with ad spend. ROI usually considers profit and broader costs beyond the advertising spend itself.
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