What the ROAS Calculator Does
Return on Ad Spend (ROAS) tells you how much revenue your advertising generates for every unit of currency you spend. This calculator takes two simple inputs — the revenue your campaign produced and the ad spend that produced it — and instantly returns your ROAS as a percentage, along with your ROI and net profit. It works with any currency, so it suits marketers running Google Ads, Meta, TikTok or any paid channel worldwide.
How to Use It
- Revenue: Enter the total sales revenue attributed to the campaign (e.g. 5000).
- Ad Spend: Enter the amount you paid for the ads over the same period (e.g. 1000).
Press calculate and the tool shows your ROAS percentage, ROI percentage and profit figure.
The Formula Explained
The core calculation is:
$$\text{ROAS} = \frac{\text{Revenue}}{\text{Ad Spend}} \times 100\%$$If ad spend is zero, the calculator returns 0 to avoid dividing by zero. Alongside ROAS, it also derives two related metrics from your inputs:
- ROI = \(\frac{\text{Revenue} - \text{Ad Spend}}{\text{Ad Spend}} \times 100\%\) — your return relative to cost, after subtracting the spend.
- Profit = \(\text{Revenue} - \text{Ad Spend}\) — the raw monetary gain.
A ROAS of 100% means you broke even (revenue equals spend); above 100% you made a gross return; below 100% the campaign lost money on a revenue basis.
Worked Example
Suppose you spent 1,000 on ads and generated 5,000 in revenue:
- ROAS = \((5000 \div 1000) \times 100\% =\) 500% (i.e. 5× your spend)
- ROI = \(\frac{5000 - 1000}{1000} \times 100\% =\) 400%
- Profit = \(5000 - 1000 =\) 4,000
So every 1 spent returned 5 in revenue and 4 in gross profit.
FAQ
What is a good ROAS? It depends on margins. Many businesses target 300–400% (3:1 to 4:1), but high-margin products can be profitable at lower ratios while thin-margin goods need more.
Is ROAS the same as ROI? No. ROAS compares revenue to spend, while ROI compares profit (revenue minus spend) to spend. This tool reports both.
Should I use gross or net revenue? Use the revenue directly attributable to the ads. For a clearer profitability view, factor in cost of goods and use the ROI and profit figures shown.
