How to Calculate R O A S
What is R O A S?
A ROAS (return on ad spend) calculator measures advertising campaign effectiveness by dividing revenue generated by the amount spent on ads. ROAS = revenue ÷ ad spend. A ROAS of 4× means every $1 spent on ads returns $4 in revenue; most businesses need at least 3–4× to be profitable.
Step-by-Step Guide
- 1Track revenue generated from campaign
- 2Subtract advertising spend
- 3Divide revenue by ad spend
Worked Examples
Input
$10,000 ad spend, $50,000 revenue
Result
5:1 ROAS
Higher is better
Common Mistakes to Avoid
- ✕Wrong parameters
- ✕Missing adjustments
Frequently Asked Questions
What does this calculator do?
Set parameters
How do I use this calculator?
Run calculation
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