ROAS (Return on Ad Spend) Calculator Calculate return on ad spend (ROAS) with profitability analysis and performance rating.

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ROAS Calculator

Calculate return on ad spend (ROAS) with profitability analysis and performance rating.

Enter revenue

Input total revenue generated from the campaign.

Enter ad spend

Input total advertising cost.

View ROAS and profit

See ROAS multiplier, net profit, and performance rating.

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What Is ROAS Calculator?

The ROAS Calculator measures the revenue generated for every dollar spent on advertising. A ROAS of 4x means you earn $4 for every $1 spent on ads. The tool provides: the return multiplier (4x), percentage return (400%), net profit, profit margin, and a performance rating (Excellent 5x+, Good 3-5x, Average 2-3x, Break Even 1-2x, Poor <1x). This metric is the primary measure for evaluating paid advertising profitability. Most businesses need a minimum 3x return to be profitable after accounting for product costs, operational expenses, and overhead.

Why Use ROAS Calculator?

Clear ROAS multiplier and percentage display
Net profit and profit margin calculation
Performance rating against industry standards
Color-coded results for quick assessment
Formula and benchmarking reference

Common Use Cases

Campaign Analysis

Evaluate which ad campaigns are generating profitable returns.

Budget Allocation

Allocate more budget to campaigns with highest ROAS.

Performance Reporting

Include ROAS in marketing performance reports.

Channel Comparison

Compare advertising ROI across different platforms.

Technical Guide

ROAS = Total Revenue / Total Ad Spend. Unlike ROI which considers all business costs, this metric specifically measures the direct revenue from advertising investment. Benchmarks vary by industry and business model: e-commerce average is 4x, SaaS can be 3-10x (due to LTV), B2B services often target 5x+. A ratio of 1x means you're breaking even on ad spend alone (but losing money when considering COGS and overhead). The formula doesn't account for customer lifetime value — a 2x return on customer acquisition may be profitable if customers make repeat purchases.

Tips & Best Practices

1
A 3x minimum ROAS is the general rule for profitability after COGS
2
Consider customer lifetime value — low ROAS on acquisition can be profitable long-term
3
Compare ROAS across campaigns, ad sets, and platforms
4
Factor in attribution model accuracy when evaluating ROAS
5
ROAS targets should vary by campaign objective — brand awareness vs. conversion

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Frequently Asked Questions

Q What is a good ROAS?

A ROAS of 4x or higher is generally considered good. Most businesses need at least 3x to be profitable after product costs.

Q What is the difference between ROAS and ROI?

ROAS measures revenue relative to ad spend specifically. ROI measures profit relative to total investment including all business costs.

About This Tool

ROAS Calculator is a free online tool by FreeToolkit.ai. All processing happens directly in your browser — your data never leaves your device. No registration or installation required.