FREE TOOL
ROAS Calculator
DIRECT ANSWER
ROAS (return on ad spend) = revenue from ads ÷ ad spend. A ROAS of 4 means $4 back for every $1 spent. This free calculator returns your ROAS instantly. Break-even is 1.0×; most profitable campaigns target well above that depending on margin.
Your ROAS
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How ROAS is calculated
ROAS = Revenue from ads ÷ Ad spend. Spend $10,000 and earn $40,000 in attributable revenue and your ROAS is 4.0× — four dollars back per dollar in.
ROAS measures revenue efficiency of ad spend. Unlike ROI it doesn't subtract cost, so read it against your margins: a 4× ROAS can be unprofitable on thin margins and very profitable on high ones.
What's a good ROAS
It depends on your gross margin and business model. A common rule of thumb is 3–4× as a healthy target and break-even at 1× — but the honest answer is your break-even ROAS = 1 ÷ gross margin. Ecommerce with 30% margins needs a higher ROAS than software with 80% margins to make the same profit.
FAQ
Questions
What is ROAS?
Return on ad spend — revenue generated per dollar of advertising, expressed as a multiple (e.g. 4× = $4 revenue per $1 spent).
What's a good ROAS?
Depends on margin. 3–4× is a common healthy target; your true break-even is 1 ÷ your gross margin. High-margin businesses can profit at lower ROAS.
ROAS vs ROI?
ROAS = revenue ÷ spend (doesn't subtract cost). ROI = (revenue − cost) ÷ cost (net return). ROAS is faster for optimizing ad campaigns; ROI is truer to profit.
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