Free Tool

ROAS Calculator

Calculate Return on Ad Spend to measure advertising efficiency.
See if your campaigns are profitable and compare performance.

$

Total amount spent on advertising

$

Revenue directly attributed to these ads

%

Enter to calculate true profit after COGS

x

Compare your actual ROAS against your goal

Measure your ad efficiency

Enter your ad spend and revenue to calculate ROAS and see if your campaigns are profitable.

The ROAS formula
ROAS = Revenue / Ad Spend

Understanding ROAS

ROAS measures the revenue earned for every dollar spent on advertising. It's essential for evaluating campaign performance.

ROAS includes

  • Revenue directly attributed to ads
  • All ad platform costs (CPC, CPM, etc.)
  • Conversion tracking data
  • Attribution window revenue

ROAS vs ROI

  • ROAS: Revenue / Ad Spend (gross return)
  • ROI: (Profit - Cost) / Cost (net return)
  • ROAS doesn't account for COGS or margins
  • Use profit margin for true profitability

ROAS benchmarks by platform

What's considered a "good" ROAS varies by platform and industry. Here are typical ranges.

Google Ads (Search)
4:1 - 8:1

High intent, varies by industry

Google Ads (Shopping)
4:1 - 10:1

Ecommerce focused

Facebook/Meta Ads
3:1 - 5:1

Varies widely by vertical

Instagram Ads
3:1 - 4:1

Visual products perform best

TikTok Ads
2:1 - 4:1

Newer platform, still maturing

LinkedIn Ads
2:1 - 5:1

B2B, higher CPCs but quality leads

Your target ROAS depends on your profit margins. Higher margins = lower ROAS needed to be profitable.

How to improve your ROAS

Refine your targeting

Narrow your audience to high-intent buyers. Use lookalike audiences, retargeting, and exclude low-performers. Better targeting = less wasted spend.

Optimize landing pages

A 1% conversion rate improvement can dramatically boost ROAS. Test headlines, CTAs, page speed, and mobile experience.

Test ad creative constantly

Creative fatigue kills ROAS. Regularly test new images, copy, and formats. What worked last month might not work now.

Increase average order value

Higher AOV means higher revenue from the same ad spend. Use bundles, upsells, cross-sells, and minimum free shipping thresholds.

Boost your marketing ROAS

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D
DigitalGrowthHacksClub
Verified Purchaser, AppSumo

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