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ROAS Calculator: Return on Ad Spend

Calculate return on ad spend, understand what your ROAS means, and compare campaign revenue with advertising cost using a transparent formula.

Interactive calculator

Calculate ROAS

Enter your values and calculate to see the result.

Formula

ROAS = Advertising revenue ÷ Advertising spend

What ROAS tells you

Return on ad spend compares revenue attributed to advertising with the amount spent on that advertising. A result of means the attribution system assigned five currency units of revenue to every one currency unit of media spend.

ROAS is a revenue-efficiency measure, not a profit measure. Product cost, fulfillment, payment fees, creative production and payroll can turn a positive ROAS into an unprofitable campaign.

Worked example

If a campaign receives $5,000 in ad spend and produces $25,000 in attributed revenue, its ROAS is 25,000 ÷ 5,000 = 5×.

Common mistakes

  • Mixing revenue from one attribution window with spend from another.
  • Comparing platform-reported ROAS values that use different attribution rules.
  • Treating attributed revenue as fully incremental revenue.
  • Using ROAS without comparing it with gross margin and break-even ROAS.

Assumptions

  • Revenue and spend cover the same attribution window.
  • ROAS excludes costs outside media spend.

Sources and methodology

CalcMotive publishes the formula and assumptions so you can decide whether the estimate fits your use case. See our methodology standards.

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