Calculate your ROAS
Enter your ad revenue and spend to see your return on ad spend as a ratio and a percentage.
- ROAS
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- ROAS (%)
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ROAS: —. ROAS (%): —
What is ROAS?
ROAS (return on ad spend) measures the revenue generated for every pound spent on advertising. It is expressed as a ratio, such as 4, meaning £4 of revenue for every £1 spent. A higher ROAS means your ad spend is working harder.
How to calculate ROAS
Divide the revenue attributed to a campaign by the amount spent on it. For example, £4,000 of revenue from £1,000 of ad spend gives a ROAS of 4, or 400% when expressed as a percentage. Use the calculator above to work this out for your own figures.
What is a good ROAS?
There is no single good ROAS — it depends on your margins, costs, and goals. A common benchmark for many businesses is a ROAS of 4 (400%), but a lower ROAS can still be profitable with high margins, while a thin-margin business may need a much higher ROAS to break even.
ROAS vs ROI
ROAS looks only at revenue against ad spend, ignoring other costs such as product cost, fulfilment, or overheads. ROI (return on investment) goes further, weighing profit against total investment. ROAS is useful for comparing campaign efficiency; ROI tells you whether the activity is actually profitable.
Break-even ROAS
Break-even ROAS is the return needed just to cover your costs, with no profit left over. It is calculated as 100 divided by your profit margin percentage. For example, a 25% margin needs a break-even ROAS of 4 — anything above that is profit, anything below it is a loss.
People also ask
- Divide the revenue from your ads by your ad spend. For example, £4,000 of revenue from £1,000 of spend gives a ROAS of 4, or 400%.
- It depends on your margins and costs. Work out your break-even ROAS first (100 divided by your margin percentage), then set a target comfortably above that to leave room for profit.
- Generally yes, but a very high ROAS can also mean you are under-spending on ads that could scale profitably. ROAS should be read alongside your margins and growth goals, not in isolation.
- ROAS compares revenue to ad spend alone. ROI compares profit to total investment, including other costs such as product and fulfilment. A campaign can have a strong ROAS but a weak ROI if those other costs are high.
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