ROAS Calculator
Calculate Return On Ad Spend (ROAS) from revenue and ad spend. Get the ROAS ratio, percentage and ad ROI instantly to judge your campaign performance.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the ROAS Calculator Works
ROAS (Return On Ad Spend) measures how much revenue a campaign earns for every dollar you spend on advertising. Enter the revenue attributed to your ads and the ad spend, and the calculator returns ROAS as a ratio, as a percentage, and your ad ROI for comparison.
The Formula
ROAS is a simple ratio of revenue to spend:
ROAS = revenue from ads ÷ ad spend
A ROAS of 5 can be written as 5:1 or 500% — five dollars back for every dollar spent. Return on investment goes one step further and nets out the spend itself:
Ad ROI = (revenue − ad spend) ÷ ad spend × 100
Worked Example
Suppose a campaign generated 5,000 dollars in revenue from 1,000 dollars of ad spend:
- ROAS = 5,000 ÷ 1,000 = 5 (i.e. 5:1)
- As a percentage = 5 × 100 = 500%
- Ad ROI = (5,000 − 1,000) ÷ 1,000 × 100 = 400%
So every dollar spent returned five dollars of revenue, and four dollars of that was over and above the spend.
ROAS Reference Table
| Ad spend | Revenue | ROAS | As % |
|---|---|---|---|
| 1,000 dollars | 1,000 dollars | 1:1 | 100% |
| 1,000 dollars | 2,000 dollars | 2:1 | 200% |
| 1,000 dollars | 4,000 dollars | 4:1 | 400% |
| 1,000 dollars | 5,000 dollars | 5:1 | 500% |
| 1,000 dollars | 10,000 dollars | 10:1 | 1,000% |
A ROAS below 1:1 means the campaign earned less revenue than it cost in ad spend alone.
ROAS vs ROI: Why Both Matter
ROAS tells you whether ads drive revenue; ROI tells you whether they drive profit. A 4:1 ROAS sounds healthy, but if your product costs 60 percent of its price to produce and deliver, much of that revenue is consumed before profit. Always read ROAS alongside your margin to know whether a campaign actually makes money.
Tips for Accurate Results
- Use revenue, not profit, in the ROAS field. ROAS is a revenue measure by definition; profitability is captured by ROI and margin.
- Attribute spend correctly. Include all costs tied to the campaign you are measuring (ad platform spend, and where relevant creative or agency fees) for a fair figure.
- Compare like with like. ROAS varies by channel, audience and product, so compare campaigns within the same context rather than against unrelated benchmarks.
This calculator is for general marketing analysis and is not financial advice.
Frequently asked questions
How do you calculate ROAS?+
Divide the revenue generated by a campaign by the amount spent on that campaign. ROAS = revenue / ad spend. For example, 5,000 dollars in revenue from 1,000 dollars of ad spend gives a ROAS of 5, written as 5:1 or 500 percent.
What is a good ROAS?+
A common benchmark is a ROAS of about 4:1 (400 percent), meaning four dollars of revenue for every dollar spent. The right target depends on your profit margins; a high-margin product can stay profitable at a lower ROAS, while a thin-margin product needs a higher one.
What is the difference between ROAS and ROI?+
ROAS compares revenue to ad spend only, while ROI (return on investment) compares profit to the total cost. ROAS = revenue / ad spend; ad ROI = (revenue - spend) / spend. ROI is usually the lower figure because it nets out the spend itself.
Is ROAS shown as a ratio or a percentage?+
Both are used. A ROAS of 5 can be written as the ratio 5:1 or as 500 percent. They mean the same thing: five dollars of revenue for every dollar of ad spend. This calculator shows both.
Does ROAS account for product cost?+
No. ROAS only measures revenue against ad spend, so it ignores the cost of goods, fulfilment and overheads. A campaign with a strong ROAS can still be unprofitable if margins are thin. Pair ROAS with your margin to judge true profitability.