ROAS Calculator
Enter attributed revenue and ad spend to get ROAS as a multiple, then compare campaigns and see what a budget increase would need to return.
- ROAS
- 3.00x
- Profit
- $10,000.00
- Margin
- 66.67%
- Status
- Strong
ROAS ≥ 3x - strong performance
Platform ROAS benchmarks
| Platform | Benchmark | vs yours |
|---|---|---|
| Google Ads | 3x | +0.0x |
| 2x | +1.0x | |
| 2.2x | +0.8x | |
| TikTok | 1.8x | +1.2x |
| 1.5x | +1.5x |
Projected spend
$6,000
Revenue needed
$18,000
Revenue gap
$3,000
Runs in your browser. Nothing you enter is uploaded.
What it does
ROAS answers one question: how many dollars of revenue came back for each dollar of ads. Enter revenue and ad spend and the tool shows ROAS as a multiple, revenue left after ad cost, and a colour-coded status based on the 2x and 3x lines built into it.
Two extra panels make it more than a division. The budget increase scenario shows how much revenue a larger budget must produce to hold the same ROAS, and the multi-campaign comparison lets you enter several campaigns and see their ROAS in one list.
How to use it
- 1
Enter Revenue ($) attributed to the ads and Ad spend ($).
- 2
Read ROAS, Profit, Margin and Status, plus the message underneath.
- 3
Check the Platform ROAS benchmarks table and the "vs yours" column.
- 4
Type a percentage into Budget increase scenario (%) to see Projected spend, Revenue needed and Revenue gap.
- 5
Click + Add campaign for each campaign you want to compare, and fill in its name, revenue and spend.
What you get
ROAS as a multiple (for example 3.00x), revenue minus ad spend, that amount as a percentage of revenue, a Strong, OK or Low status, a five-platform comparison, a budget scenario, and a per-campaign ROAS list.
When to use it
- Weekly paid media check-in
- Enter revenue and spend from the ads manager to get ROAS and the status line in seconds.
- Justifying a budget increase
- Set the increase percentage to see projected spend, revenue needed at your current ROAS, and the gap from today.
- Ranking campaigns
- Add a row per campaign to see which ones are over 3x and which are under 2x.
- Reporting to a client
- Pair the ROAS multiple with the platform reference table to give context without quoting unsourced averages.
Example
Input
Revenue $15,000, ad spend $5,000, budget increase 20%
Output
ROAS 3.00x, Profit $10,000.00, Margin 66.67%, Status Strong. Scenario: projected spend $6,000, revenue needed $18,000, revenue gap $3,000.
ROAS = revenue / spend. Profit here is revenue minus ad spend only; product costs, shipping and fees are not subtracted.
Tips
- Work out your break-even ROAS before judging any result: it is 1 divided by your gross margin. At a 40% margin you need 2.5x just to cover product cost and ads.
- Use the same attribution window for revenue that you use for spend. Mixing a 7-day click window with a full month's spend understates ROAS.
- The tool's Strong and Low labels use fixed 3x and 2x lines, which may be too strict or too loose for your margins.
- The budget scenario assumes ROAS holds as spend grows. In practice it often falls, so treat revenue needed as a minimum.
Questions
How do I find my break-even ROAS?
Divide 1 by your gross margin as a decimal. With a 25% margin, break-even ROAS is 4x; with 50%, it is 2x. Anything below that loses money once product costs are paid.
Why does the profit figure look higher than my real profit?
The tool subtracts only ad spend from revenue. Cost of goods, shipping, payment fees and returns are not included, so real profit will be lower.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares profit with total investment, including costs beyond ads. Use the ROI calculator for the full picture.
How much revenue do I need if I raise my ad budget?
To keep the same ROAS, multiply the new spend by your current ROAS. The budget increase panel shows this figure and how far it is above current revenue.