ROAS Calculator
ROAS shows the return on your advertising: how many dollars of revenue each dollar of ad spend produced. It is the compass of paid media. Enter the revenue and the spend.
Your numbers
Result
- As a percentage
- 500%
| Item | Value |
|---|---|
| Ad spend | $1,000.00 |
| Revenue generated | $5,000.00 |
| ROAS | 5.00× ($5.00 per $1) |
How to calculate ROAS
The formula is ROAS = revenue ÷ ad spend. Spending $1,000 on ads to earn $5,000 is a ROAS of 5 (or 500%) — every $1 spent returned $5 in revenue. Higher is better, and it is usually written as a multiple ("5x") rather than a percentage.
ROAS vs ROI and break-even
ROAS looks at revenue, not profit — it ignores the cost of the product, taxes and fees. So a "positive" ROAS can still lose money on a thin margin. Your break-even ROAS is 1 ÷ margin: at a 20% margin you need a ROAS of at least 5 just to cover costs. Aim above that to actually profit.
Frequently asked questions
Sources
- Digital marketing — paid media metrics
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