Return on Ad Spend

Calculate ROAS for advertising campaigns.

Return on Ad Spend (ROAS) Calculator - Free Online Tool

Return on Ad Spend (ROAS) Calculator

Calculate and optimize your advertising campaign performance

4:1
Average Good ROAS
5:1+
Excellent ROAS
Break-even
At 1:1 Ratio

ROAS Calculator

Total revenue attributed to the ad campaign

Total amount spent on advertising

Additional Metrics (Optional)

Results

Return on Ad Spend (ROAS)
ROI
Profit
Cost per Conversion
Revenue per Conversion
Click-through Rate
Cost per Click
Conversion Rate

ROAS Benchmarks by Industry

Industry Average ROAS Good ROAS Excellent ROAS
E-commerce 4:1 6:1 10:1+
SaaS 3:1 5:1 8:1+
Lead Generation 5:1 7:1 12:1+
Real Estate 2:1 4:1 6:1+
Automotive 3:1 5:1 8:1+

Understanding ROAS

What is ROAS?

Return on Ad Spend (ROAS) is a marketing metric that measures the revenue generated for every dollar spent on advertising. It's calculated by dividing the revenue generated by the advertising campaign by the cost of that campaign.

Formula:

ROAS = Revenue ÷ Ad Spend

ROAS vs ROI

ROAS

Measures revenue per dollar spent on ads

Example: 4:1 ROAS = $4 revenue per $1 ad spend

ROI

Measures profit per dollar spent on ads

Example: 300% ROI = $3 profit per $1 ad spend

Improving Your ROAS

Increase Revenue

  • • Improve targeting and audience quality
  • • Optimize ad creative and messaging
  • • Enhance landing page conversion
  • • Increase average order value

Reduce Ad Spend

  • • Pause low-performing campaigns
  • • Optimize bidding strategies
  • • Improve Quality Scores
  • • Use negative keywords effectively

Key Considerations

  • Attribution Window: Consider how long after ad exposure conversions are tracked
  • Customer Lifetime Value: ROAS should account for repeat purchases
  • Profit Margins: High ROAS doesn't always mean high profitability
  • Brand vs Performance: Brand campaigns may have lower direct ROAS but higher long-term value
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