If you’re running ads on Google or Meta, one metric rules them all: ROAS (Return on Ad Spend).
ROAS tells you how much revenue you’re generating for every dollar you spend on advertising. Whether you’re managing Facebook Ads, Google Ads, or TikTok campaigns, knowing your ROAS helps you decide what’s working, and what needs to go.
Use our simple ROAS calculator below to get instant insights into your ad performance 👇 (scroll to the bottom if you’re impatient…you won’t hurt our feelings)
✅ What is ROAS?
ROAS (Return on Ad Spend) is a performance marketing metric that measures the revenue generated for every dollar spent on advertising.
🧮 ROAS Formula
Here’s 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 you’re 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 company’s budget. There’s no good ROAS or bad ROAS, but you should always have a target ROAS and know what it is.
⚙️ Free ROAS Calculator
Just plug in your numbers and let the calculator do the math.
📊 ROAS Calculator