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ROAS Calculator

Calculate Return on Ad Spend to measure advertising efficiency.

Enter Your Numbers

Total revenue attributed to the ad campaign
Total amount spent on the campaign
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Enter your numbers and click Calculate to see your results.

Frequently Asked Questions

Everything you need to know about roas calculator.
What is ROAS and how is it different from ROI?
ROAS (Return on Ad Spend) = Revenue ÷ Ad Spend. It measures revenue generated per dollar of ad spend. ROI (Return on Investment) = (Revenue − Total Costs) ÷ Total Costs × 100. ROAS only accounts for ad spend, while ROI includes all costs (COGS, overhead, etc.). A 4x ROAS means you generate $4 in revenue for every $1 spent on ads, but this does not mean you are profitable — you also need to account for product costs and operating expenses.
B2B ROAS benchmarks depend heavily on gross margins. For SaaS with 70–80% gross margins, a 3–5x ROAS is typically profitable. For services businesses with 50–60% margins, aim for 5–8x ROAS. For lower-margin businesses, you may need 8–12x ROAS to be profitable. Always calculate your break-even ROAS (1 ÷ Gross Margin) before setting targets.
Break-even ROAS = 1 ÷ Gross Margin. For example, if your gross margin is 60%, your break-even ROAS = 1 ÷ 0.60 = 1.67x. Any ROAS above this means your campaigns are contributing to profit. Any ROAS below this means you are losing money on every sale generated through paid advertising.
For B2B with long sales cycles, CPA (cost per acquisition) is often more practical because you may not know the revenue impact of a campaign for 6–12 months. Use CPA for short-term optimisation and ROAS for long-term program evaluation. When possible, use pipeline-influenced revenue as your ROAS numerator to get earlier signal on campaign effectiveness.

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