ROAS Calculation
ROAS measures revenue generated per dollar spent on advertising.
Formula
ROAS = Revenue from Ads / Ad Spend
Expressed as ratio (e.g., 4:1) or decimal (e.g., 4.0)
ROAS Calculator (Return on Ad Spend)
Calculate return on ad spend for advertising campaigns. Measure revenue generated per ad dollar spent.
ROAS
roas
Revenue per dollar spent
ROI
roi%
Return on investment percentage
💡 ROAS Benchmarks
• Good ROAS: 4:1 (400% ROI)
• Average ROAS: 2-3:1 (200-300% ROI)
• Excellent ROAS: 8:1+ (800%+ ROI)
• E-commerce target: 4-6:1 ROAS
• Retargeting often achieves 10:1+ ROAS
Frequently Asked Questions
What is a good ROAS?
Good ROAS is 4:1 ($4 revenue per $1 spent), excellent is 8:1+. E-commerce targets 4-6:1. B2B lead gen accepts 2-3:1 for high LTV customers. ROAS varies by product margin - high-margin products need lower ROAS to be profitable.
What is the difference between ROAS and ROI?
ROAS = Revenue / Ad Spend (expressed as ratio, e.g., 4:1). ROI = (Revenue - Ad Spend) / Ad Spend × 100 (expressed as percentage, e.g., 300%). ROAS 4:1 = 300% ROI. ROAS shows revenue multiple, ROI shows profitability percentage.
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