ROAS Calculator
Know your return on ad spend.
Are your ads getting you results?
Paying for advertising to drive traffic or generate sales can be a risk. Why? Who knows if it will be profitable? By calculating your return on ad spend (ROAS) you can plan for success.
What is ROAS?
ROAS is an acronym for Return on Ad Spend. ROAS is a number used to assess how effectively an advertising campaign can generate sales. It is computed by dividing the overall revenue by the sum of the advertising expenses multiplied by 100. What makes ROAS so useful is it makes it evident how much money is made for every dollar spent on advertising. Advertisers can make decisions based on the ROAS if their campaigns are profitable or not. A high ROAS means that the campaign is generating more revenue than the amount spent on advertising, while a low ROAS suggests that the advertising expenses are higher than the revenue generated.
What's considered a good ROAS?
This a tough question to answer. Since every industry and business has unique advertising tactics, sales cycles, and conversion objectives, there isn’t a single statistic that can be used to determine a “good ROAS.” A value of 4:1 is excellent for some brands. Other brands could view this as a failure. Return on ad spend varies across various businesses and media, just like conversion rates do.