Free Return on Ad Spend Calculator
Calculate return on ad spend (ROAS) to measure the revenue generated for every dollar spent on advertising.
ROAS
5.00
ROAS vs Revenue from Ads
How to Calculate Return on Ad Spend
Formula
ROAS = Revenue from Ads / Ad Spend
ROAS measures how effectively your advertising budget translates into revenue. A ROAS of 4.0 means every dollar of ad spend generates $4 in revenue. Unlike ROI, ROAS focuses solely on gross revenue and does not subtract product costs or overhead, so a profitable campaign typically needs a ROAS well above 1.0 to cover those expenses.
Example Calculation
An advertising campaign generated $50,000 in revenue from $10,000 in ad spend.
- 01ROAS = $50,000 / $10,000 = 5.0
- 02ROAS % = 5.0 x 100 = 500%
- 03Net Revenue = $50,000 - $10,000 = $40,000
Frequently Asked Questions
Learn More
How to Calculate Profit Margin
Learn how to calculate gross, operating, and net profit margins step by step. Understand what healthy margins look like across industries and how to improve yours.