ROAS Calculator
Calculate Return on Ad Spend โ how much revenue your advertising generates for every dollar invested in marketing.
RETURN ON AD SPEND
5ร (400%)
NET RETURN
$40.00K
REVENUE
$50.00K
AD SPEND
$10.00K
๐ก ROAS: Measuring Advertising Efficiency
ROAS (Return on Ad Spend) is the fundamental metric for evaluating advertising performance. It answers one critical question: for every dollar spent on advertising, how many dollars of revenue does it generate? ROAS = Revenue from Ads รท Ad Spend.
A ROAS of 5ร means every $1 in ad spend generates $5 in revenue. However, ROAS alone doesn't tell you if you're profitable โ you must also consider product costs, fulfillment, and overhead. A 5ร ROAS with 60% gross margins yields $3 in gross profit per $1 spent โ healthy. The same 5ร ROAS with 20% margins yields only $1 โ barely breaking even.