If youâre running ads on Google or Meta, one metric rules them all: ROAS (Return on Ad Spend).
ROAS tells you how much revenue youâre generating for every dollar you spend on advertising. Whether youâre managing Facebook Ads, Google Ads, or TikTok campaigns, knowing your ROAS helps you decide whatâs working, and what needs to go.
Use our simple ROAS calculator below to get instant insights into your ad performance đ (scroll to the bottom if youâre impatientâŠyou wonât hurt our feelings)
â What is ROAS?
ROAS (Return on Ad Spend) is a performance marketing metric that measures the revenue generated for every dollar spent on advertising.
đ§ź ROAS Formula
Hereâs the basic ROAS calculation:
For example, if you spent $1,000 on ads and earned $4,000 in sales, your ROAS would be:
That means youâre earning $4 for every $1 spent. Not bad!
Different businesses have different standards here. Much of it has to do with the internal decisions about how capital is deployed and what sort of return is acceptable for the companyâs budget. Thereâs no good ROAS or bad ROAS, but you should always have a target ROAS and know what it is.
âïž Free ROAS Calculator
Just plug in your numbers and let the calculator do the math.
đ ROAS Calculator