ROAS Calculator
Measure how much revenue your ads bring in, and whether that revenue is actually profitable.
- ROAS as a percentage
- 350%
- ACoS
- 28.57%
- Profit after ad spend
- $1,150.00
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How to use the ROAS calculator
- Enter the revenue your ads generated for the period.
- Enter the amount you spent on ads in the same period.
- Add your gross margin to see whether the campaign made a profit after ad spend.
ROAS formula
A high ROAS is not automatically profitable. Compare your ROAS with your break-even ROAS, which depends on margin.
Example
A campaign spends 2,000 and brings in 7,000 in revenue. ROAS is 3.5× (350%) and ACoS is 28.57%. With a 45% gross margin, the sales produce 3,150 in gross profit, leaving 1,150 profit after ad spend.
What is a good ROAS?
It depends on margin. With a 50% margin you break even at 2×, so 3× or more is healthy. With a 25% margin you need 4× just to break even. Always judge ROAS against your own break-even point.
ROAS vs ROI
ROAS only compares revenue with ad spend. ROI compares profit with total investment. A campaign can show a strong ROAS but a weak ROI once product and shipping costs are included.
Frequently asked questions
How do I calculate ROAS?
Divide revenue from ads by the amount spent on those ads.
What does a ROAS of 4 mean?
Every 1 spent on ads returned 4 in revenue.
What is the difference between ROAS and ACoS?
ACoS is ad spend divided by revenue, the inverse of ROAS, used mostly on Amazon.
Which revenue should I use?
Use the revenue attributed to the ads in your ad platform or analytics for the same period as the spend.
Why is profit negative with a good ROAS?
Your margin is too low for that ROAS. Check your break-even ROAS.
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