Advertising Revenue / Advertising SpendDivide attributed advertising revenue by advertising spend.
Calculator
ROAS Calculator
ROAS
ROAS calculator
Calculator
Enter your campaign values
Provide the revenue and spend values used to calculate your ROAS.
Revenue attributed to the advertising activity being evaluated.
Total advertising cost associated with the same activity.
Both values must use the same currency. Currency changes formatting only.
Revenue/Spend=ROAS
Your ROAS result
Enter your values
Enter advertising revenue and advertising spend to calculate ROAS.
ROAS measures attributed revenue relative to ad spend. It does not show profit because it does not include product costs, salaries, fulfillment, taxes, fees, or overhead.
Methodology details
- Formula version
- ROAS_FORMULA_V1
- Calculation method
- Revenue / Spend
- Data handling
- Entered values stay local
- Benchmark policy
- No universal threshold
The metric
What ROAS tells you.
ROAS stands for return on ad spend. It measures the revenue attributed to advertising compared with the money spent on that advertising.
A ROAS of 5× means that each 1 unit spent on advertising generated 5 units of attributed revenue. ROAS is useful for comparing advertising performance, but it is not the same as profit.
Calculation method
How to calculate ROAS.
Use revenue and spend from the same advertising activity, attribution method, time period, and currency.
ROAS Percentage = ROAS × 100Both forms describe the same relationship.
Worked example
See the relationship in one view.
Advertising Revenue$5 000
Advertising Spend$1 000
ROAS5×
500%
Every $1 spent generated $5 in attributed revenue.
Planning tool
Plan your ROAS backwards.
Turn a target ROAS into a revenue goal or advertising budget.
Planner
Configure your scenario
Choose what you need to plan, then provide the campaign target.
Planning mode
The advertising spend available for the planned campaign.
The ROAS multiple the campaign is intended to reach.
Currency changes formatting only.
Required revenue
To achieve a 4× ROAS with $5 000 in ad spend, your campaign needs to generate $20 000 in attributed revenue.
$5 000Ad Spend
4×Target ROAS
$20 000Required revenue
Compare targets
See how your target changes the plan.
Interpretation
Understand the relationship, not a rating.
None of these relationships alone determines profit.
Attributed revenue is lower than advertising spend.
Profitability depends on costs beyond ad spend.Attributed revenue equals advertising spend.
Profitability depends on costs beyond ad spend.Attributed revenue exceeds advertising spend.
Profitability depends on costs beyond ad spend.There is no universal good ROAS. The ROAS required for profitability depends on your gross margin, operating costs, returns, taxes, discounts, shipping, agency fees, attribution method, customer lifetime value, and business model.
Compare metrics
ROAS and ROI answer different questions.
ROAS
- Measures
- Attributed advertising revenue
- Formula
- Revenue / ad spend
- Broader costs
- Not directly included
Useful for understanding revenue attributed to advertising relative to its spend.
It does not determine profitability.
ROI
- Measures
- Profit relative to total investment
- Formula
- Profit / total investment
- Broader costs
- Included depending on scope
Useful when the wider costs required to determine profit are included.
Its meaning depends on the costs included in the calculation.
Important context
ROAS is not a profitability calculation.
This calculator uses the revenue and advertising-spend values you provide. Its result is only as meaningful as the attribution method, time period, and cost definition behind those values.
ROAS does not directly account for:
Direct and operational costs
Cost of goods sold, salaries, fulfillment, shipping, taxes, discounts, and overhead.
Campaign cost definition
Agency fees unless they are included in advertising spend.
Attribution and customer value
Returns, attribution differences, or customer lifetime value.
Different advertising platforms can report different ROAS values because they may use different attribution models, reporting windows, conversion definitions, and revenue sources.
Answers
Frequently asked questions
What does ROAS mean?
ROAS means return on ad spend. It shows how much attributed revenue was generated for each unit spent on advertising. For example, a ROAS of 5× means that every 1 unit of ad spend generated 5 units of attributed revenue.
How is ROAS calculated?
ROAS is calculated by dividing advertising revenue by advertising spend. To express it as a percentage, multiply the ROAS multiple by 100.
What is a good ROAS?
There is no universal good ROAS. The ROAS you need depends on gross margin, operating costs, returns, taxes, discounts, shipping, agency fees, customer lifetime value, attribution method, and your business model. Compare ROAS with your own profitability requirements rather than relying on a general benchmark.
Is a ROAS above 1 profitable?
Not necessarily. A ROAS above 1 means attributed revenue is higher than advertising spend. Profitability also depends on costs that ROAS does not include, such as product costs, fulfillment, salaries, taxes, fees, and overhead.
What is the difference between ROAS and ROI?
ROAS compares attributed advertising revenue with advertising spend. ROI compares profit with total investment. ROAS does not directly account for the wider costs required to determine profit.
Should ROAS be shown as a number or percentage?
Both forms describe the same result. A ROAS of 5× is equal to 500%. The multiple is often easier to read when comparing revenue generated per unit of ad spend, while the percentage may fit reporting conventions.
Can I calculate ROAS for one campaign?
Yes. Use the revenue attributed to that campaign and the advertising spend for the same campaign, time period, attribution method, and currency. The result is meaningful only when those values describe the same activity.
Which revenue should I use?
Use the revenue attributed to the advertising activity you are evaluating. Keep the attribution method and reporting period consistent with the advertising-spend value. This calculator does not decide which attribution model is correct for your business.
Should agency fees be included in ad spend?
Include agency fees only if your definition of advertising spend includes them. Use the same definition consistently when comparing ROAS results. If you exclude agency fees, remember that the result will not represent those costs and may not indicate profitability.
Why can advertising platforms report different ROAS values?
Platforms can use different attribution models, conversion windows, conversion definitions, revenue sources, reporting dates, and tracking methods. Different ROAS values may therefore reflect different measurement rules rather than a calculation error.
Methodology
What this calculator uses.
Methodology: This calculator applies ROAS_FORMULA_V1: attributed advertising revenue divided by advertising spend. The percentage result is the ROAS multiple multiplied by 100.
Data source: The calculator uses the values entered by the user. It does not import advertising-platform data, exchange rates, benchmarks, or external reference data in version 1.
Interpretation: The result measures attributed revenue relative to advertising spend. It is not a profitability calculation and does not provide a universal performance benchmark.
Accuracy & trust
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