Result
ROAS
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
ROAS = ad-driven revenue ÷ ad spend. A value of 4 (or 400%) means every dollar spent on ads brought in $4 of revenue.
The key thing about ROAS is that it's based on revenue, not profit. A campaign with a ROAS of 4 can still lose money if margins are thin: at a 20% margin, revenue four times the spend barely clears a profit, and at 15% margin the campaign is already underwater.
To judge real effectiveness, ROAS is best read alongside margin (see the markup and margin calculator) or replaced with ROMI, which is based on profit rather than revenue. ROAS is great for quickly comparing campaigns and channels against each other, but it doesn't answer "are we actually making money."