Marketing
ROAS Calculator
Measure return on ad spend, estimate revenue from a target multiple, or back into the budget behind a campaign.
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Enter revenue and ad spend to calculate ROAS.
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ROAS Formula Explained
Calculate ROAS
ROAS = Revenue / Ad Spend
Calculate Revenue
Revenue = ROAS x Ad Spend
Calculate Spend
Ad Spend = Revenue / ROAS
What is ROAS in advertising?
ROAS is a revenue efficiency metric for advertising. A 4.0x ROAS means the campaign generated four dollars in attributed revenue for every dollar spent.
It is especially useful for comparing channels, campaigns, and audiences. Still, ROAS should be interpreted alongside gross margin, fulfillment costs, and customer lifetime value before you call a campaign truly profitable.
Frequently asked questions
What is ROAS?
ROAS stands for return on ad spend. It tells you how much revenue you generate for every dollar spent on advertising.
How do I calculate ROAS?
Divide attributed revenue by ad spend. If you generate $8,000 from $2,000 in ad spend, your ROAS is 4.0x, meaning you earned $4 in revenue for every $1 spent.
Is ROAS the same as ROI?
No. ROAS looks only at revenue relative to ad spend. ROI is broader and considers net profit after all relevant costs.
What is a good ROAS?
A good ROAS depends on your margins and business model. Ecommerce brands with 30–40% gross margins often need at least a 3–4x ROAS to break even on ad spend after cost of goods and other variable costs. Higher-margin businesses can be profitable at lower ROAS.
How does ROAS differ from MER?
ROAS is typically measured at the campaign or channel level using platform-attributed revenue. MER (marketing efficiency ratio) takes total revenue divided by total marketing spend across all channels, providing a blended view that accounts for cross-channel effects and attribution gaps.