ROAS Calculator
See how much revenue comes back for the money you put into ads, expressed as a single ratio.
Calculator
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Result
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What is ROAS?
ROAS, short for Return on Ad Spend, is the ratio showing how many times over your ad spend came back as revenue. It is a multiplier rather than a currency amount: it describes how much revenue each unit of spend returned.
ROAS works with revenue, not profit. It excludes cost of goods, shipping, platform fees and staff costs. So it tells you how much revenue a campaign produced, but not how much of that revenue you actually kept.
How it is calculated
ROAS = Ad Revenue ÷ Ad Spend
Divide the revenue your ads generated in a period by what you spent on those ads in the same period. Both figures must cover the same date range and the same set of campaigns; mixing periods makes the ratio look better or worse than it is.
What you count as revenue also changes the answer. Decide upfront whether you are using completed orders only or gross revenue including returns, then keep that definition constant across every measurement.
How to read the result
A result of 1x means the revenue returned equals what you spent to get it. Anything below 1x means the campaign produced less revenue than it consumed.
Being above 1x is not proof of profit on its own, because ROAS cannot see your costs. To know whether a campaign actually earns money, compare this ratio against the break even threshold your profit margin requires.
Frequently asked questions
Is ROAS the same as profit?
No. ROAS divides revenue by spend and ignores cost of goods, shipping and platform fees. To see profit you need what remains after every cost is subtracted from revenue.
What time period should I use?
Any period works as long as revenue and spend cover the same range. Because a purchase decision can come days after the ad was seen, very short windows can understate the ratio.
Can I combine ROAS across several channels?
You can divide total revenue by total spend, but that is no longer channel level ROAS; it is an account wide efficiency measure. MER is the more accurate frame for that question.