ROAS Calculator

Calculate Return on Advertising Spend (ROAS) to measure advertising effectiveness and optimize your marketing campaigns for better ROI.

Calculate ROAS

Calculation Method

Basic ROAS Profit-Based Campaign Analysis

Revenue Generated ($)

Total revenue from advertising

Advertising Spend ($)

Total advertising investment

Formula: ROAS = Revenue ÷ Advertising Spend

Revenue Generated ($)

Advertising Spend ($)

Cost of Goods Sold ($)

Direct costs of products sold

Operating Expenses ($)

Overhead and operational costs

Formula: Profit ROAS = (Revenue - COGS - Operating Expenses) ÷ Advertising Spend

Campaign Data

Impressions

Clicks

Conversions

Revenue ($)

Ad Spend ($)

Avg Order Value ($)

Results

ROAS

0.00:1

Return per dollar spent

Key Metrics

Revenue: $0

Ad Spend: $0

Net Profit: $0

ROI: 0%

Performance Rating

Calculate to see rating

Interpretation

Enter values to see ROAS analysis and marketing recommendations.

ROAS Performance Analysis

Understanding ROAS

Return on Advertising Spend (ROAS) is a marketing metric that measures the revenue generated for every dollar spent on advertising. It's essential for evaluating the effectiveness of advertising campaigns and optimizing marketing budgets.

ROAS Formula

ROAS = Revenue from Advertising ÷ Advertising Spend

Expressed as a ratio (e.g., 5:1) or percentage (e.g., 500%)

ROAS vs ROI

ROAS: Focuses on revenue generated from advertising spend
ROI: Considers profit after deducting all costs including COGS
Usage: ROAS for campaign optimization, ROI for profitability analysis
Formula: ROI = (Revenue - Total Costs) ÷ Advertising Spend

ROAS Benchmarks and Optimization

Industry Benchmarks

E-commerce: 4:1 to 6:1 (400% to 600%)
SaaS: 3:1 to 5:1 (300% to 500%)
Retail: 4:1 to 8:1 (400% to 800%)
B2B Services: 2:1 to 4:1 (200% to 400%)
Lead Generation: 2:1 to 3:1 (200% to 300%)

Optimization Strategies

Audience Targeting: Refine targeting to reach high-value customers
Ad Creative: Test different creatives to improve engagement
Landing Pages: Optimize conversion paths and user experience
Bid Management: Adjust bids based on performance data
Attribution: Use proper attribution models for accurate measurement

Key Performance Indicators

Click-Through Rate (CTR): Percentage of impressions that result in clicks
Conversion Rate: Percentage of clicks that result in conversions
Cost Per Click (CPC): Average cost for each click
Cost Per Acquisition (CPA): Average cost to acquire a customer
Customer Lifetime Value (CLV): Total value of a customer relationship

Common Challenges

Attribution complexity across multiple touchpoints
Delayed conversions affecting short-term ROAS calculations
Brand awareness campaigns with indirect revenue impact
Seasonal variations affecting performance comparisons
Cross-device tracking and measurement challenges