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ROAS
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Enter values to calculate.
As percentage
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Profit after ads
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Formulas: ROAS = ad revenue / ad spend. Above 1.0x the ads pay for themselves; compare against your margin for real profit.
Enter ad spend and the revenue it generated to get your ROAS and see whether the campaign is profitable.
Results update live as you type.
Enter values to calculate.
ROAS of 4.0x means every $1 of ads produced $4 of revenue. But revenue is not profit: with a 25% product margin, a 4.0x ROAS exactly breaks even (1 / 0.25 = 4). Profitable advertising needs ROAS above 1 divided by your margin.
ROAS measures gross revenue per ad dollar and ignores product costs. ROI subtracts all costs. Use ROAS to compare campaigns and ad sets against each other, and ROI or net profit to judge the business result.