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Marketing & Advertising

ROAS Calculator

Calculate return on ad spend from revenue and ad spend, with a plain-language interpretation and how it differs from ROI.

ROAS vs. profit and ROI

ROAS only compares revenue to ad spend — it ignores product cost, shipping, overhead, and other expenses, so a high ROAS does not necessarily mean the campaign was profitable. ROI (return on investment) accounts for total costs, not just ad spend, and is a different calculation. What counts as a "good" ROAS varies enormously by margin, industry, and business model — there is no single universal target.

Calculated entirely in your browser — nothing you enter here is sent to a server.

ROAS (return on ad spend) tells you how much revenue each dollar of ad spend generated — a 4x ROAS means $4 of revenue for every $1 spent on ads. It says nothing about profit: if your product costs $3 to make and ship for every $4 it sells for, a 4x ROAS could still mean you're barely breaking even once non-ad costs are included.

There is no single "good" ROAS — the break-even point depends entirely on your margins, so a 2x ROAS can be excellent for a high-margin service and unprofitable for a low-margin product.