ROAS Calculator
After inputting your total ad revenue and ad spend, our ROAS calculator will give you an immediate ROAS calculation. Learn more about the importance of your ROAS below!
What Is ROAS?
ROAS stands for Return On Ad Spend. It’s a metric that helps businesses understand the return they generate in relation to their advertising expenditure. Essentially, ROAS indicates how much revenue a business earns for every dollar spent on advertising.
How Is ROAS Calculated?
ROAS is calculated using the following formula:
ROAS=(TotalAdRevenue)/(TotalAdSpend). For instance, if you earned $200 from an ad campaign and spent $300 on it, your ROAS would be 67%. This means you earned 67 cents for every dollar spent, which doesn’t indicate a profit.
What Is the Significance of the ROAS Metric?
ROAS is crucial for businesses using paid advertising strategies, as it provides insights into the effectiveness of ad campaigns, helping businesses determine if they are getting a good return on their advertising investments. A positive ROAS percentage indicates revenue generation, but it’s essential to consider all costs to determine actual profitability.
How Do I Use the ROAS Calculator?
To use the ROAS calculator:
- Input the total revenue generated from a specific ad source.
- Enter the total amount spent on that ad source.
- Click “Solve” to instantly get your ROAS.
What is a Good ROAS?
A “good” ROAS can vary based on industry, business model, and campaign objectives. Generally, a ROAS above 100% indicates that you’re earning more than you’re spending on ads. However, businesses should consider all associated costs and set ROAS targets based on their specific margins and expenses.
Why Should I Use a ROAS Calculator?
A ROAS calculator provides a quick and straightforward way to determine your return on ad spend. It eliminates manual calculations, reduces errors, and offers instant insights, helping businesses make informed decisions about their ad campaigns.
