Quick answer
Return on ad spend (ROAS) = revenue from ads ÷ ad spend. $5,000 of ad revenue on $1,000 of spend is a ROAS of 5×.
Enter revenue attributed to ads and ad spend. The calculator returns ROAS.
Related tools: Markup Calculator: Selling price from cost and markup percentage. CPM Calculator: Cost per thousand impressions. CTR Calculator: Click-through rate.
How to use the ROAS Calculator
- Enter revenue from ads ($) (0 or more).
- Enter ad spend ($) (above 0).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Revenue from ads ($) | A number | ≥ 0 |
| Ad spend ($) | A number | > 0 |
Formula and method
Formula
ROAS = revenue ÷ ad spend
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Direct ratio.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Revenue from ads ($) = 5000; Ad spend ($) = 1000.
| Result | Value |
|---|---|
| ROAS | 5× |
Example 2
Inputs: Revenue from ads ($) = 750; Ad spend ($) = 500.
| Result | Value |
|---|---|
| ROAS | 1.5× |
The first line is the headline result (rOAS). IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Break-even ROAS
ROAS ignores product cost. With a 40% gross margin, you need a ROAS of at least 1 ÷ 0.40 = 2.5 just to cover costs of goods and ads. A ROAS of 5 leaves a profit; 2 would lose money at that margin.
Attribution
The revenue figure depends on how conversions are attributed, such as last click or data-driven. Compare like with like and consider repeat purchases.
ROAS and break-even
$5,000 revenue from $1,000 spend is a ROAS of 5×. Revenue is not profit: with a 25% margin the break-even ROAS is 1 ÷ 0.25 = 4×.
At 5× and a 25% margin, profit is 5,000 × 0.25 − 1,000 = $250.
How the result changes with revenue from ads
Holding every other input at the first worked example, this table changes only revenue from ads. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Revenue from ads | ROAS |
|---|---|
| 2500 | 2.5× |
| 5000 | 5× |
| 10000 | 10× |
| 20000 | 20× |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Ad spend ($): entering "0" shows "Ad spend ($) must be greater than 0." beside that field and no result.
Choosing between the ROAS Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Markup Calculator](/business/markup-calculator/) | cost and markup | Selling price |
| [CPM Calculator](/business/cpm-calculator/) | ad spend and impressions | CPM |
| [CTR Calculator](/business/ctr-calculator/) | clicks and impressions | CTR |
| [Break-Even Calculator](/business/break-even/) | fixed costs, price per unit and variable cost per unit | Break-even units |
| [Margin Calculator](/business/margin-calculator/) | cost and revenue | Gross margin |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Denominator must be positive
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for ad spend ($) to confirm this.
Frequently asked questions
What is a good ROAS?
Often 4 or more, depending on margins.
How is ROAS different from ROI?
ROI subtracts costs; ROAS is revenue per dollar of ads.
Can ROAS be below 1?
Yes, meaning ad revenue is less than spend.
What is break-even ROAS?
The reciprocal of the profit margin. At a 25% margin it is 4×.
Is a higher ROAS always better?
Not always. Chasing a very high ROAS can limit volume, so look at profit too.
What does the ROAS Calculator calculate?
Return on ad spend. It returns ROAS.
What formula does the ROAS Calculator use?
ROAS = revenue ÷ ad spend. Direct ratio.
What do I need to enter in the rOAS Calculator?
You enter Revenue from ads ($) and Ad spend ($).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Denominator must be positive.
What is an example of a rOAS result?
With revenue from ads ($) 5000 and ad spend ($) 1000, the rOAS is 5×.
Related calculators
- Markup Calculator — Selling price from cost and markup percentage.
- CPM Calculator — Cost per thousand impressions.
- CTR Calculator — Click-through rate.
- Break-Even Calculator — Units and revenue needed to cover fixed and variable costs.
- Margin Calculator — Profit, gross margin and markup from cost and revenue.
- ROI Calculator — Return on investment, with optional annualized return.
Sources
- Common definition used on this page. No single authoritative standard defines it, so the exact formula is stated in the formula section above
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.