Last updated October 5, 2026 · Report an error
Return on Ad Spend (ROAS) is the core efficiency metric for paid advertising: how much revenue you generate for every dollar spent. It's the number most ad platforms report directly, and the one advertisers use to compare campaigns.
This calculator divides ad revenue by ad spend to get your ROAS, expressed both as a multiple (e.g. 4.5x) and as a percentage.
How it works
Enter the revenue generated from a campaign and the amount spent on it. The tool divides revenue by spend to get ROAS, and also shows the resulting profit.
- Enter revenue from ads.
- Enter ad spend.
- Click Calculate to see your results.
Examples
ROAS for a $2,000 ad campaign
$9,000 in revenue from $2,000 in ad spend gives a ROAS of 4.5x (450%), with $7,000 in profit.
Who should use it
- Comparing efficiency across ad campaigns or platforms.
- Deciding whether to scale up or pause an ad campaign.
Industry applications
- Digital marketing and advertising
- E-commerce
Advantages
- Simple, universally understood metric across ad platforms.
- Shows both the multiple and percentage framing in one result.
Limitations
- Doesn't account for cost of goods sold or profit margin.
- A single campaign-level ROAS can hide performance differences between ad sets or audiences.
Common mistakes to avoid
- Treating ROAS as pure profit without subtracting cost of goods sold or other overhead.
- Chasing a high ROAS number in isolation without checking if it's actually profitable given margins.
Best practices
- Calculate your break-even ROAS (based on profit margin) so you know the minimum ROAS needed to actually profit, not just recoup ad spend.
Tips
- Calculate your break-even ROAS from your profit margin (100 / margin percent) so you have a clear minimum bar before calling a campaign profitable.
Frequently asked questions
Yes, with no signup and no limit on how many calculations you run.
It depends heavily on your profit margin — a common rule of thumb is 4x (400%) as a healthy baseline for many e-commerce businesses, but a business with thin margins may need a much higher ROAS to be profitable.
No — ROAS compares revenue to ad spend, while ROI compares profit to total investment (including cost of goods, not just ad spend). ROAS is simpler but doesn't account for your margins.
No — this is pure ad revenue vs. ad spend. To know true profitability you also need to subtract cost of goods sold, which ROAS alone doesn't capture.