What is ROAS?
ROAS (Return On Advertising Spend) is a marketing metric that measures how much revenue an advertising campaign generates for every unit of currency spent on ads. Expressed as a percentage, it answers the simple question: for each dollar (or euro, yen, etc.) of ad cost, how much sales revenue came back? This is a universal formula used in every market and currency — just be sure to enter both figures in the same currency unit.
How to use this calculator
Enter your total campaign Revenue (Sales) and your total Advertising Cost, using the same currency for both. The calculator divides revenue by ad cost and multiplies by 100 to give you a clean percentage. A result above 100% means the ads brought back more revenue than they cost; below 100% means they cost more than they returned.
The formula explained
The math is straightforward:
$$\text{ROAS} (\%) = \frac{\text{Revenue}}{\text{Ad Cost}} \times 100$$The ratio of revenue to spend tells you the multiplier of money returned, and multiplying by 100 turns it into a percentage. There is no upper cap — a highly efficient campaign can show 300%, 500% or more. The only restriction is that advertising cost must be greater than zero (otherwise the ratio is undefined).
Worked example
Suppose a campaign generated 1,200 in revenue from 1,000 in ad spend.
$$\text{ROAS} = \frac{1{,}200}{1{,}000} \times 100 = 120\%$$That means every 1 unit spent on ads produced 1.2 units of revenue. In another case, 5,000 revenue on 2,000 spend gives
$$\frac{5{,}000}{2{,}000} \times 100 = 250\%$$
FAQ
Is ROAS the same as ROI? No. ROAS compares revenue to ad spend only. ROI (Return On Investment) is based on profit and accounts for product cost, margins and other expenses. A campaign can have high ROAS but low ROI if margins are thin.
What is a good ROAS? It depends on your profit margin. For high-margin products a ROAS of 200% may be very profitable; for low-margin products you may need 400% or more just to break even after all costs. Always compare ROAS against your break-even point.
What does 100% ROAS mean? Revenue exactly equals ad spend — you broke even on the advertising line, before considering any other costs of doing business.
