ROAS Calculator
Our free ROAS calculator helps you instantly calculate return on ad spend (ROAS). Simply input your total ad revenue and ad spend to determine your advertising ROI. Learn more about the importance of your ROAS below!
What is ROAS (Return on Ad Spend)?
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:
The ROAS formula is: ROAS = (Total Ad Revenue)/(Total Ad Spend)
Use this advertising ROI formula to calculate ROAS for any campaign.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 to Use Our Free ROAS Calculator Tool
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?
Our return on ad spend calculator provides a quick and accurate way to determine your advertising ROI. This ROAS calculation tool helps marketers track campaign performance and optimize ad spend return. It eliminates manual calculations, reduces errors, and offers instant insights, helping businesses make informed decisions about their ad campaigns.
