ROAS Calculator
Calculate return on ad spend instantly
Understanding ROAS in Advertising
What is ROAS?
ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent on advertising. A ROAS of 3.0x means you earn $3 in revenue for every $1 spent on ads.
What is a Good ROAS?
A good ROAS varies by industry and business model. Generally:
- Below 1.0x: You're losing money on ads
- 1.0x - 2.0x: Low but may be acceptable for high-margin products
- 2.0x - 3.0x: Good performance
- Above 3.0x: Excellent performance
ROAS vs ROI
ROAS only measures revenue against ad spend, while ROI considers all costs (product, shipping, fees, etc.) to show actual profit. Use both metrics together for a complete picture.
Example Calculation
If you spend $1,000 on ads and generate $3,000 in revenue:
- ROAS: $3,000 / $1,000 = 3.0x
- Meaning: For every $1 spent on ads, you earn $3 in revenue
Remember: A high ROAS doesn't always mean high profit. Always consider your total costs to determine true profitability.