ROAS Calculator
Calculate your Return on Advertising Spend (ROAS) - a key metric that measures the revenue generated for every dollar spent on advertising.
Calculate Your ROAS
Your ROAS
Enter your revenue and ad spend to see your ROAS
What is ROAS?
ROAS (Return on Advertising Spend) measures the revenue generated for every dollar spent on advertising campaigns.
Formula: ROAS = Revenue ÷ Ad Spend
A ROAS of 4:1 means you generate $4 in revenue for every $1 spent on advertising. Higher ROAS indicates more efficient advertising spend.
Note: ROAS measures revenue, not profit. Consider your profit margins when evaluating campaign success.
ROAS Benchmarks
E-commerce:4:1 - 6:1
SaaS/Software:3:1 - 5:1
Lead Generation:2:1 - 4:1
Financial Services:5:1 - 10:1
Retail/Fashion:4:1 - 8:1
*Benchmarks vary greatly by business model and profit margins
ROAS vs Other Metrics
ROAS
•Measures revenue generated
•Best for campaign optimization
•Easy to calculate and track
ROI
•Measures actual profit
•Accounts for all costs
•Better for profitability analysis
CPA
•Cost per acquisition
•Measures efficiency per customer
•Good for lead generation
Tips to Improve ROAS
•Target high-intent keywords and audiences
•Optimize landing pages for conversions
•Use retargeting to re-engage visitors
•A/B test ad creatives and copy
•Focus budget on top-performing campaigns
•Use negative keywords to filter traffic
•Test different audience segments
•Optimize for mobile user experience
•Adjust bids based on performance data
•Focus budget on best-performing campaigns