Return On Ad Spend (ROAS)
0.00
Profit
$0.00
Cost Per Conversion
$0.00
Revenue Per Conversion
$0.00
Average Conversion Value
$0.00
Cost Per Month
$0.00
Revenue Per Month
$0.00
Profit Per Month
$0.00
ROAS Calculator
Related Calculators
ROAS Calculator Guide
Table of Contents
- Introduction
- What is ROAS?
- How to Use the Calculator
- Understanding Results
- ROAS Formula
- Examples
- ROAS & Profit Metrics
- Conversion Metrics
- Time-Based Metrics
- Frequently Asked Questions
- Additional Insights
- Conclusion
Introduction
Measuring advertising effectiveness is crucial for maximizing your marketing spend. One of the key performance indicators is Return on Ad Spend (ROAS). ROAS quantifies how much revenue is generated per dollar spent on ads.
Whether you run online campaigns on social media, search engines, or offline campaigns, understanding your ad efficiency is critical. The free ROAS Calculatorlets you enter ad spend, revenue, profit margins, and conversions to quickly analyze performance.
With clear outputs and easy-to-read metrics, marketers can identify high-performing campaigns, optimize underperforming ones, and make informed budget decisions for sustained growth.
What is ROAS?
ROAS measures revenue earned per dollar of advertising spend. A ROAS of 3 means that every $1 spent yields $3 in revenue. This metric provides a snapshot of ad efficiency.
Combining ROAS with profit margin, cost per conversion, and revenue per conversion delivers deeper insights. You not only see revenue but also understand actual profitability.
Our calculator automates these calculations, helping you avoid tedious spreadsheet work and providing a comprehensive marketing performance view in seconds.
How to Use the Calculator
Enter your total ad spend and total revenue in the calculator. Add your profit margin percentage to calculate true net profit. If you know conversion counts, enter them to compute cost and revenue per conversion.
Select a time period — daily, weekly, monthly, or yearly — to see time-based ROAS metrics. The calculator updates all figures instantly as you type, giving immediate insights.
With these inputs, marketers can easily evaluate performance trends, identify high-performing campaigns, and adjust budgets accordingly.
Understanding Results
The results display provides the ROAS ratio, net profit, cost per conversion, and revenue per conversion. Visual cues highlight profitable outcomes for quick understanding.
Monitoring trends over different periods helps identify seasonal patterns and campaign sustainability. This ensures budget is allocated efficiently and campaigns are optimized for maximum ROI.
The calculator is designed to be intuitive for both beginners and expert marketers, streamlining analysis without the need for complex tools.
ROAS Formula
ROAS = Total Revenue ÷ Advertising Spend Profit = (Total Revenue × Profit Margin) - Advertising Spend Cost Per Conversion = Advertising Spend ÷ Number of Conversions Revenue Per Conversion = Total Revenue ÷ Number of Conversions
Examples
- Spend $5,000, generate $20,000 → ROAS = 4
- Revenue $20,000 with 25% margin → Profit = $5,000; minus ad spend → Break-even
- 100 conversions, $5,000 ad spend → Cost per conversion = $50
- Revenue $20,000 ÷ 100 conversions → $200 revenue per conversion
- Monthly analysis shows trends and helps budget allocation decisions
ROAS & Profit Metrics
| Metric | Description | Formula |
|---|---|---|
| ROAS | Revenue per dollar spent | Revenue ÷ Ad Spend |
| Profit Margin | Share of revenue that is profit | (Profit ÷ Revenue) × 100% |
| Profit | Net earnings after subtracting ad spend | (Revenue × Margin) - Ad Spend |
| Net ROI | Profit relative to spend | (Profit ÷ Ad Spend) × 100% |
| Gross Revenue | Total money earned from ads | Revenue |
| Adjusted ROAS | ROAS accounting for returns or refunds | (Revenue - Refunds) ÷ Ad Spend |
| Effective Spend | Actual spend after discounts or credits | Ad Spend - Credits |
Conversion Metrics
| Metric | Description | Formula |
|---|---|---|
| Cost Per Conversion | Average cost per acquisition | Ad Spend ÷ Conversions |
| Revenue Per Conversion | Revenue generated per conversion | Revenue ÷ Conversions |
| Customer Acquisition Cost | Cost to acquire one customer | Ad Spend ÷ Conversions |
| Conversion Rate | Percentage of users converting | (Conversions ÷ Clicks) × 100% |
| Lead Value | Revenue attributed per lead | Revenue ÷ Leads |
| Profit per Conversion | Profit divided by number of conversions | Profit ÷ Conversions |
| Average Order Value | Revenue per order | Revenue ÷ Orders |
Time-Based Metrics
| Metric | Description | Formula |
|---|---|---|
| Cost Per Time Unit | Spend per day, week, or month | Ad Spend ÷ Period |
| Revenue Per Time Unit | Revenue per day, week, or month | Revenue ÷ Period |
| Profit Per Time Unit | Profit by period | (Revenue × Margin - Spend) ÷ Period |
| Monthly ROAS | ROAS adjusted for month | (Revenue ÷ Month) ÷ (Spend ÷ Month) |
| Weekly ROAS | ROAS adjusted for week | (Revenue ÷ Week) ÷ (Spend ÷ Week) |
| Daily ROAS | ROAS adjusted for day | (Revenue ÷ Day) ÷ (Spend ÷ Day) |
| Yearly ROAS | ROAS adjusted for year | (Revenue ÷ Year) ÷ (Spend ÷ Year) |
Frequently Asked Questions
Additional Insights
ROAS connects revenue to ad spend, preventing businesses from overestimating success. A campaign generating $50,000 may look profitable but could have negligible profit if ad costs are high.
Tracking conversions alongside ROAS reveals true efficiency. By analyzing profit per conversion, marketers understand which campaigns deliver value for money.
Time-based ROAS analysis shows trends across days, weeks, and months. Short-term underperformance may not reflect long-term success; consistent tracking ensures better decisions.
Using this calculator helps businesses of all sizes streamline reporting, save time, and make data-driven marketing choices.
Conclusion
The ROAS Calculator provides actionable insights for marketers, combining revenue, profit, conversion, and time metrics into a single tool. Understanding these metrics ensures smarter budget allocation, improved ROI, and stronger campaign performance. It’s suitable for small businesses, agencies, and enterprises alike, delivering clarity in advertising investments.