Calculate your Return on Ad Spend (ROAS) to measure the effectiveness and profitability of your advertising campaigns. Understand how much revenue you generate for every dollar spent on ads.
A ROAS calculator (Return on Ad Spend) measures advertising campaign profitability by dividing revenue generated by ad spend. ROAS = Revenue from Ads / Ad Spend × 100%. A 400% ROAS means every $1 spent on ads generates $4 in revenue ($3 profit before other costs). Essential metric for digital marketers, ecommerce businesses, and advertisers evaluating campaign performance across Google Ads, Facebook Ads, TikTok, and other platforms. Unlike ROI which accounts for all costs, ROAS specifically measures advertising efficiency. Typical targets: 400-500% ROAS for ecommerce, 200-300% for services, 800-1000% for digital products with high margins.
Optimize marketing budgets by identifying profitable campaigns and cutting underperforming ads—campaign with 200% ROAS losing money after accounting for product costs, while 500% ROAS campaign is highly profitable. Scale winning campaigns confidently: if campaign consistently delivers 600% ROAS, increasing budget from $1k to $10k monthly should proportionally increase revenue from $6k to $60k. Compare advertising channels objectively: Google Shopping delivers 450% ROAS versus Facebook delivers 280%, allocate more budget to Google. Set profitable bid strategies: if 400% ROAS is breakeven after product costs and expenses, only scale campaigns exceeding 400%. Track performance trends: ROAS declining from 500% to 300% signals ad fatigue, increased competition, or decreasing conversion rates requiring creative refresh or targeting adjustments.
Enter total ad spend for campaign or time period (daily, weekly, monthly) and total revenue attributed to those ads (tracked via conversion tracking, UTM parameters, or attribution models). Calculator shows ROAS as percentage and ratio. Example: $2,000 ad spend generates $10,000 revenue = 500% ROAS or 5:1 ratio. Determine profitability: calculate product costs and expenses, then determine minimum ROAS for breakeven. If product costs 40% of revenue and operating expenses 20%, need minimum 167% ROAS to breakeven (1/0.60 = 1.67). Target 300-500% ROAS for sustainable profitability. Measure by: individual campaign, ad set, audience segment, or creative variation to optimize performance. Integrate with Google Analytics, Facebook Ads Manager, or Shopify for automatic ROAS tracking.
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