What is ROAS (Return on Ad Spend) Calculator?
ROAS tracks the amount of revenue generated for every dollar spent on advertising. Unlike ROI, it focuses strictly on ad spend.
How it Works
1. Enter 'Total Revenue' from ads.
2. Input 'Total Ad Spend'.
3. Result = Revenue / Spend.
Example
Input: $5,000 Revenue, $1,000 Spend
Result: 5.0x ROAS
FAQ
What is a good ROAS?
Typically 4:1 (4x) is considered successful, covering product and ops costs.
ROAS vs ROI?
ROAS ignores other costs (COGS, shipping); ROI looks at total profit.
Can it be < 1?
Yes, < 1 means you are losing money on every ad dollar.
Break-even ROAS?
Calculate 1 / Margin%. If margin is 50%, break-even ROAS is 2.0.
Platform differences?
Google Search often has higher ROAS than Facebook due to intent.
Conclusion
Understanding your ROAS is critical for scaling. A high ROAS (e.g., >4x) indicates efficient spending, allowing you to reinvest profits. Use this metric to cut losing campaigns and double down on winners.