ROAS Calculator

Return on Ad Spend (ROAS) is the single most important metric for evaluating the effectiveness of your advertising campaigns. It tells you exactly how much revenue you generate for every dollar invested in advertising — and whether your campaigns are actually profitable.

The formula is straightforward: ROAS = Revenue from Ads / Ad Spend. A ROAS of 3.0x means you earn $3 for every $1 you spend on advertising. But raw ROAS alone does not tell the whole story — you need to factor in your Cost of Goods Sold (COGS) and operating expenses to understand true profitability.

That is why this calculator goes beyond simple ROAS math. It calculates your break-even ROAS based on your actual gross margins, projects revenue at different spend levels using your CPC and conversion rate, and shows you exactly where you stand against industry benchmarks.

How to Use This ROAS Calculator

Start by entering your current monthly ad spend and the revenue generated from those ads — these two inputs are all you need for a basic ROAS calculation. Open Advanced Inputs to add COGS, CPC, conversion rate, and average order value for deeper analysis including break-even ROAS, projected revenue curves, and sensitivity analysis.

Use the scenario comparison feature to model different strategies side by side — what happens if you increase budget by 50%? What if you improve conversion rate? The Risk Radar identifies which variable has the biggest impact on your profits, so you know where to focus optimization.

Industry Benchmarks

Average ROAS varies significantly by platform and industry. Google Ads averages around 2.0x, while Facebook Ads typically delivers 2.5x ROAS. E-commerce brands often target 4.0x+ ROAS, while lead generation campaigns may accept lower ROAS if the customer lifetime value is high. Select your industry above to see relevant benchmarks throughout the calculator.