ROAS Calculator
Divide ad revenue by ad spend and see your return on ad spend, with guidance on what a good ROAS looks like.
ROAS
What it measures
ROAS divides the revenue your ads produced by what the ads cost. A 4x ROAS means every unit of spend returned four.
Why it matters
ROAS is the fastest read on paid performance, but it is a gross number: it knows nothing about margin. Pair it with break even ROAS before judging a campaign.
A worked example
24,000 in tracked revenue from 6,000 of spend is 4x ROAS. Whether that is good depends entirely on your margin.
How to read and improve it
Rising ROAS usually comes from cutting waste, not finding magic creative: search terms, placements and audiences that spend without converting.
Frequently asked questions
What is a good ROAS?
Above your break even ROAS with room to spare. For a 50 percent margin business that means comfortably above 2x.
ROAS or ROI?
ROAS is revenue over spend. ROI is profit over cost. ROAS flatters; ROI tells the truth.
More in Paid media: Break Even ROAS Calculator · PPC ROI Calculator · Advertising ROI Calculator
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