ROAS Calculator
Calculate the ROAS (Return On Ad Spend) of a campaign: how much revenue each unit of currency you spend on advertising generates. It's the direct calculation shown by Google Ads, Meta Ads and most platforms — useful for comparing campaigns, though it doesn't by itself tell you whether you're really making money (for that, look at margin: use the minimum profitable ROAS calculator).
How is it calculated?
ROAS = revenue generated ÷ ad spend, expressed as a multiplier (a ROAS of 4 means 4 in revenue for every 1 spent on ads). Gross profit is simply revenue minus spend — gross because it doesn't deduct the product's cost or other expenses, it only compares revenue against ad spend.
Examples
8,000 in revenue generated with 2,000 in ad spend
ROAS: 4x (6,000 in gross profit).
4,500 in revenue generated with 1,500 in ad spend
ROAS: 3x (3,000 in gross profit).
ROAS, ROI and CAC: what each one measures
A high ROAS doesn't guarantee profit: it depends on your margin. Use it to compare campaigns, then move on to minimum ROAS or ROI to know if you're really making money.
| Metric | What it answers | Calculator |
|---|---|---|
| ROAS | How much revenue each unit spent on ads generates | This page |
| Minimum profitable ROAS | What ROAS you need to avoid losing money given your margin | Minimum ROAS |
| Marketing ROI | How much real profit the campaign generated | Marketing ROI |
| CAC and LTV | How much a customer costs and how much profit they generate | CAC and LTV |