ROAS Calculator
Measure return on ad spend (ROAS) and evaluate marketing campaign profitability. Free calculator for marketers, SMBs, and advertising teams.
ROAS Calculator
Measure return on ad spend (ROAS) and evaluate marketing campaign profitability. Free calculator for marketers, SMBs, and advertising teams.
Generated: 2/22/2026, 12:34:03 AM | AskSMB.io
Calculate ROAS
Input Values
Total amount spent on ads
Revenue directly attributed to ads
Campaign duration (e.g., 30 days)
Results
Ad spend cannot be zero
ROAS (Return on Ad Spend)
0x
Primary profitability metric
ROAS Percentage
0%
ROAS expressed as a percentage
Net Profit from Ads
$0
Revenue minus ad spend
Performance Indicator
N/A
🔴 Poor: < 1.5x
🟡 Average: 1.5x - 3x
🟢 Strong: > 3x
Campaign Performance Overview
How the ROAS Calculator Works
What is ROAS?
ROAS (Return on Ad Spend) is a marketing metric that measures the revenue generated for every dollar spent on advertising. It's expressed as a ratio (e.g., 4:1 or 4.0x) or percentage (400%). ROAS helps marketers evaluate campaign effectiveness, compare different advertising channels, and make data-driven budget allocation decisions. Unlike ROI, which considers profit, ROAS focuses specifically on revenue relative to ad spend.
Why ROAS Matters in Marketing
ROAS is crucial because it tells you whether your advertising is profitable and which campaigns deserve more budget. A high ROAS indicates efficient ad spending, while low ROAS signals the need for optimization. It enables quick performance comparisons across campaigns, platforms, ad sets, and creatives. For businesses with tight margins, monitoring ROAS prevents overspending on underperforming campaigns. It also helps forecast revenue based on planned ad budgets and justify marketing spend to stakeholders.
ROAS vs ROI (Key Differences)
ROAS measures revenue per advertising dollar: Revenue ÷ Ad Spend. It's a top-line metric focused on ad efficiency. ROI (Return on Investment) measures profit (not revenue) relative to total costs: (Profit ÷ Total Investment) × 100. ROI considers all costs—product, shipping, overhead—while ROAS only looks at ad spend. A campaign can have 5x ROAS but negative ROI if product margins are low. Use ROAS for evaluating ad performance and ROI for overall business profitability decisions.
What is a Good ROAS?
Good ROAS varies by industry, business model, and profit margins. General benchmarks:
- E-commerce: 4:1 or higher is considered good
- B2B/SaaS: 2:1 - 3:1 (longer sales cycles, higher LTV)
- Retail: 3:1 - 5:1 depending on margins
- Lead generation: 5:1 - 10:1 (lower cost per lead)
Consider your profit margins when setting ROAS targets. If margins are 50%, you need at least 2:1 ROAS to break even. For 25% margins, you need 4:1 ROAS minimum.
How to Improve ROAS
- Improve ad targeting to reach higher-intent audiences
- Optimize landing pages for better conversion rates
- Test ad creatives, copy, and CTAs to boost engagement
- Use retargeting to re-engage warm audiences
- Increase average order value through upsells and bundles
- Exclude poor-performing placements and audiences
- Bid strategically based on conversion data
- Focus budget on top-performing campaigns and channels
- Improve attribution tracking to capture full customer journey
- Align ad messaging with landing page offers
Example Calculation
Frequently Asked Questions
Related Tools
💡 Quick Tips
- •All calculations happen in your browser - your data is private
- •Results update in real-time as you type
- •Export to PDF or share via link
- •No sign-up required