Learn the ROAS formula, when it is useful, and how to interpret return on ad spend.
ROAS means return on ad spend. The core formula is simple:
ROAS = revenue from ads / ad spend
A ROAS of 5x means every dollar spent on ads generated five dollars in revenue. Use ROAS with margin, conversion rate, and customer acquisition cost before increasing spend.
For a fast check, open the ROAS Calculator.
Calculate return on ad spend from revenue and advertising cost. Runs in your browser with no account required.
Business CalculatorsCalculate cost per click from ad spend and clicks. Runs in your browser with no account required.
Business CalculatorsCalculate cost per acquisition or conversion. Runs in your browser with no account required.