ROAS Calculator
Calculate Return on Ad Spend to measure how much revenue you generate for every dollar spent on advertising.
Your ROAS
ROAS
4.00x
For every $1 spent on ads, you generated $4.00 in revenue.
$20,000 ÷ $5,000
Revenue per $1 Spent
$4.00
Revenue generated for every $1 of ad spend
Ad Spend
$5,000
Total Revenue
$20,000
Assessment
Strong ROAS
Want to understand what this number means for your overall growth?
Run a free Growth Audit to review your ROAS, CAC, LTV, margin, and ad spend together.
Run Free Growth AuditFormula
Example Calculation
You spend $5,000 on Google Ads and generate $20,000 in revenue.
For every $1 spent on ads, you earned $4 in revenue — a 4x ROAS.
How to Interpret ROAS
Common Mistakes
- ✕Using total revenue instead of campaign-attributed revenue.
- ✕Ignoring product costs — high ROAS can still be unprofitable.
- ✕Comparing ROAS across channels without accounting for attribution.
- ✕Optimizing ROAS alone without new-customer goals.
Frequently Asked Questions
A commonly cited benchmark is 4x, but it varies significantly by industry and margin. A business with 25% gross margin needs a minimum 4x ROAS to break even. Use the Break-Even ROAS Calculator for your specific number.