Free ROAS Calculator

Calculate return on ad spend from advertising revenue and cost, then explore what different ROAS targets mean for your campaign.

ROAS workspace

Target ROAS is a multiplier (for example 4.0x), not a percentage.

Example values loaded

All values use this currency. Do not mix currencies in one calculation.

Revenue attributed to the ads for the same period as spend.

Enter 4 for a 4.0x target. Leave blank to skip target math.

Analytics workspace

ROAS performance dashboard

ROAS is attributed revenue ÷ ad spend. Revenue minus spend is not profit.

Primary KPI

Actual

Return on ad spend

4.00x

400.00% as a percentage

This measures revenue efficiency for the entered period. It is not net profit after cost of goods or operating expenses.

Attributed revenue

Input

$8,000.00

Ad spend

Input

$2,000.00

Revenue minus ad spend

$6,000.00

Context only — other costs excluded

Currency

USD

Display currency only — do not mix currencies

Revenue vs spend composition

Combined magnitude: $10,000.00

  • Attributed revenue

    $8,000.00

    80% of composition

  • Ad spend

    $2,000.00

    20% of composition

Composition compares magnitude only. It is not an ROI or profit chart.

Revenue vs ad spend

  • Attributed revenue$8,000.00
  • Ad spend$2,000.00

Required revenue

Target

$10,000.00

Additional to target

Gap

$2,000.00

Progress toward target revenue$8,000.00 / $10,000.00
ROAS ignores product cost and most other expenses. How this estimate is calculated

What is ROAS?

Return on ad spend (ROAS) measures how much attributed advertising revenue you generate for each unit of ad spend. It answers a revenue-efficiency question, not a full profitability question.

How to calculate ROAS

ROAS = attributed ad revenue ÷ ad spend when spend is greater than zero. Display it as a multiplier (for example 4.00x) or as a percentage (400%). If spend is zero, ROAS is undefined — this calculator will not show infinity or a fake 0x.

Worked example

$8,000 attributed revenue ÷ $2,000 ad spend = 4.0x ROAS, or 400%. Revenue minus ad spend equals $6,000. That difference is useful context, but it is not profit because cost of goods, fees, salaries, and other expenses are excluded.

Target ROAS

Required revenue for a target = target ROAS multiplier × ad spend. Additional revenue to target = max(required revenue − actual revenue, 0). Enter targets as multipliers such as 4.0, not as 400%.

What is a good ROAS?

There is no universal good ROAS. A viable target depends on gross margin, contribution after variable costs, repeat purchase value, attribution windows, and overhead. A 3x ROAS can be excellent for one business and unsustainable for another.

ROAS vs ROI

ROAS uses revenue. Marketing ROI in the Marketing Forecast Calculator uses net profit after ad spend. High ROAS can still lose money after product costs and operating expenses. Use both metrics with clear definitions.

Common ROAS calculation mistakes

  • Mixing attributed and unattributed revenue in the numerator.
  • Comparing gross revenue to spend while ignoring refunds and cancellations.
  • Using mismatched date ranges for revenue and spend.
  • Mixing currencies or converting inconsistently.
  • Treating revenue minus ad spend as profit.

Frequently asked questions

Is ROAS the same as ROI?

No. ROAS is revenue ÷ ad spend. ROI depends on how you define profit and which costs you include.

Why is ROAS blank when spend is zero?

Division by zero is undefined. Showing 0x or infinity would be misleading.

Should target ROAS be entered as a percent?

No. Enter a multiplier such as 4.0 for a 4x target. 400% would be a different input convention and is not used here.

Does this include product cost?

No. ROAS ignores cost of goods and most other expenses. Use margin-aware planning separately when you need contribution or profit targets.

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