ROAS Calculator
Calculate your Return on Ad Spend (ROAS) — the revenue generated for every dollar spent on advertising. Instantly see your ROAS ratio, percentage, and whether your campaigns are profitable.
ROAS Formula
Example
Frequently Asked Questions
A ROAS of 4x (400%) is commonly cited as a benchmark for e-commerce. However, the ideal ROAS depends on your profit margins — businesses with thin margins may need 8x or more to be profitable.
ROAS measures revenue per ad dollar (Revenue ÷ Spend). ROI measures profit per dollar invested and accounts for all costs including product cost, which gives a more complete picture of profitability.
Target ROAS depends on your gross margin. If your margin is 40%, you need at least a 2.5x ROAS to break even on ad spend (1 ÷ 0.4). Most advertisers target 3x–6x for profitable campaigns.
Google Ads and Meta both offer Target ROAS bidding strategies. You set a target ROAS and their algorithms automatically adjust bids to maximise revenue while trying to hit that return.
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