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Calculate return on ad spend

Enter the revenue your ads brought in and what you spent. ROAS is revenue divided by ad spend, shown as a ratio such as 5.00× and as a percentage.

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How to use

  1. Enter revenue attributed to ads and the ad spend.
  2. Add more campaigns to compare.
  3. Optionally enter your gross margin to see the profit after ad costs.

Worked example

$12,500 revenue from $2,500 ad spend is a ROAS of 5.00 (500%).

Supported formats and limits

InputRevenue, ad spend
OutputROAS, comparison table
EngineDeterministic formulas with explicit rounding

Limitations

  • ROAS depends on how revenue is attributed to ads; different attribution models give different numbers.
  • Revenue minus ad spend is not profit: product, shipping and other costs are only reflected through the optional gross margin.

Questions

How is overall ROAS for several campaigns calculated?

Revenue and spend are summed across campaigns first, then divided. It is not an average of the individual ROAS values, so large campaigns weigh more.

Is a ROAS above 1 profitable?

Not necessarily. ROAS ignores product and other costs. Add your gross margin and the tool shows revenue × margin minus ad spend, plus the break-even ROAS for that margin (100 ÷ margin %). At a 40% margin you need at least 2.50×.

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