ROAS Calculator
Are your ads making money? Calculate your Return on Ad Spend to find out.
Return on Ad Spend (ROAS)
4.00x
Excellent
Percentage
400%
Profit
$3,000
What is ROAS?
ROAS stands for Return on Ad Spend. It is a marketing metric that measures the amount of revenue your business earns for each dollar it spends on advertising.
ROAS vs. ROI: What's the Difference?
While ROI measures the overall profit of an investment after all expenses, ROAS focuses specifically on gross revenue generated from ad spend. ROAS helps you understand if your specific ad campaigns are driving sales, while ROI tells you if your business is profitable overall.
What is a Good ROAS?
A common benchmark for a "good" ROAS is 4:1 (400%). This means for every $1 spent, you generate $4 in revenue. However, the ideal ROAS varies by industry and profit margins. High-margin products can afford a lower ROAS, while low-margin products need a much higher one to remain profitable.
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