acalculator

What is my ROAS?

Enter the revenue your ads brought in and what they cost to see your return on ad spend, as a ratio and as a percent. Or enter a target ROAS to see the revenue a budget must bring in, or the most you can spend for a revenue.

Your numbers

As a ratio: 4 for 4:1 (400%).
ROAS (ratio)
4

$20,000.00 of revenue from $5,000.00 of ad spend is a ROAS of 4 (400%).

ROAS (percent)
400%
Revenue minus ad spend
$15,000.00

ROAS (ratio): 4. $20,000.00 of revenue from $5,000.00 of ad spend is a ROAS of 4 (400%).

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Computes ROAS (return on ad spend) from ad revenue and ad spend, or the revenue or spend for a target ROAS, as a ratio and a percent.

Example with the default inputs (Revenue from ads $20,000.00, Ad spend $5,000.00): $20,000.00 of revenue from $5,000.00 of ad spend is a ROAS of 4 (400%).

Formula: ROAS = revenue ÷ ad spend; ROAS % = ROAS × 100; revenue = ROAS × ad spend; ad spend = revenue ÷ ROAS.

  • The revenue is what the ads brought in, before the cost of the goods sold and other costs.
  • Arithmetic is exact on the typed decimals; results round once for display, halves up.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Revenue from ads $5.00, Ad spend $1.00 gives ROAS 5, ROAS (percent) 500%, Revenue minus ad spend $4.00.Source: Google Ads Help, "About Target ROAS bidding" ($5 in sales ÷ $1 in ad spend × 100% = 500% ROAS). https://support.google.com/google-ads/answer/6268637
  2. ROAS 4, Ad spend $2,500.00 gives Revenue from ads $10,000.00, ROAS (percent) 400%.Source: Google Ads Help, "About Target ROAS bidding" ($5 in sales ÷ $1 in ad spend × 100% = 500% ROAS). https://support.google.com/google-ads/answer/6268637
  3. Revenue from ads $12,000.00, ROAS 3 gives Ad spend $4,000.00, Revenue minus ad spend $8,000.00.Source: Google Ads Help, "About Target ROAS bidding" ($5 in sales ÷ $1 in ad spend × 100% = 500% ROAS). https://support.google.com/google-ads/answer/6268637
  4. Revenue from ads $1,000.00, Ad spend $3,000.00 gives ROAS 0.333333, Revenue minus ad spend -$2,000.00.Source: Google Ads Help, "About Target ROAS bidding" ($5 in sales ÷ $1 in ad spend × 100% = 500% ROAS). https://support.google.com/google-ads/answer/6268637

How it works

With the revenue from ads R and the ad spend S:

  • ROAS = R ÷ S (a ratio, such as 4 for 4:1)
  • ROAS in percent = R ÷ S × 100
  • Revenue R = ROAS × S
  • Ad spend S = R ÷ ROAS

Fill in any two of revenue, ad spend and ROAS (as a ratio), and the calculator works out the third. If you fill in all three, they must agree. The page also shows the revenue minus the ad spend, R − S.

Rules:

  • The revenue is $0 or more and the ad spend more than $0, each at most $1 trillion. The ROAS is from 0 to 1,000 (100,000%).
  • A ROAS of 0 cannot give the ad spend, because any spend fits.
  • The arithmetic is exact on the decimals you type. Results show to the cent and the ROAS to 2 decimals, with halves rounded up (away from 0).

Assumptions

  • The revenue counts only sales that came from the ads, before the cost of the goods and any other costs.

Worked examples by hand

$5 of sales from $1 of ads. ROAS = 5 ÷ 1 = 5, or 500%. Revenue minus spend is $4.

A ROAS of 4 on $2,500. R = 4 × 2,500 = $10,000.

$12,000 of revenue at a ROAS of 3. S = 12,000 ÷ 3 = $4,000, and revenue minus spend is $8,000.

$1,000 of revenue from $3,000 of ads. ROAS = 1,000 ÷ 3,000 = 0.333…, shown as 0.33 (33.33%). Revenue minus spend is −$2,000.

Other questions people ask

What is ROAS?

ROAS, return on ad spend, is the revenue an ad campaign brings in for each dollar it costs. A ROAS of 4 (or 400%) means $4 of sales for every $1 of ads.

How do I calculate ROAS?

Divide the revenue from the ads by the ad spend. $5 of sales from $1 of ads is a ROAS of 5. Multiply by 100 for a percent: 500%.

What is a good ROAS?

A ROAS above 1 means the ads brought in more revenue than they cost, but that revenue still has to pay for the goods and other costs. The ROAS you need depends on your margins: the lower your margin, the higher the ROAS you need to make a profit.

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend only. ROI (return on investment) compares profit with the whole cost, so it takes off the cost of the goods and other expenses. A campaign can have a ROAS above 1 and still lose money.

How much revenue do I need for a target ROAS?

Multiply the target ROAS by the ad spend. For a ROAS of 4 on a $2,500 budget, the ads must bring in 4 × 2,500 = $10,000.

How do I write ROAS as a percent?

Multiply the ratio by 100. A ROAS of 3 is 300%, and a ROAS of 0.5 is 50%. Google Ads target ROAS bidding uses the percent form.