ROAS Calculator
Calculate return on ad spend (ROAS) as a ratio and a percentage, with a quick verdict on whether the campaign pays.
How it works
ROAS = revenue from ads ÷ ad spend · As % = ROAS × 100
ROAS divides the revenue an ad drove by what you paid for the ad. A ROAS of 4 (or 4:1, or 400%) means every dollar of spend returned four dollars of revenue. Anything under 1 means the campaign brought back less than it cost — a loss even before you subtract the cost of the product itself.
Worked example
Ads that generate $8,000 in revenue from $2,000 in spend return 8,000 ÷ 2,000 = 4.0 — a 4:1 ROAS, or 400%. Every $1 spent brought back $4 in revenue.
Frequently asked questions
What is a good ROAS?
It depends on margins, but a common rule of thumb is that 4:1 (400%) is healthy for many businesses. Below 1:1 you are spending more than the ads bring in; break-even ROAS equals 1 ÷ your profit margin.
How is ROAS different from ROI?
ROAS compares revenue to ad spend only. ROI compares profit to total cost, so it accounts for the cost of goods and overhead. A 4:1 ROAS can still be unprofitable if margins are thin.
Why is my ROAS under 1?
Revenue from the ads is less than what you spent on them — the campaign is losing money before you even count product costs. Pause, narrow the targeting, or fix the landing page before scaling.
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Educational estimate, not financial advice.