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Advertising

ROAS Calculator

Calculate your return on ad spend instantly. See if your Meta, Google, and TikTok ads are actually profitable — with profit-adjusted ROAS to reveal your real return after product costs.

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Instant ROAS calculation
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Profit-adjusted analysis
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CPA tracking
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Channel benchmarks
$

Total ad spend for the period (Meta, Google, TikTok, etc.)

$

Total revenue attributed to those ads

Orders generated from ads

Average Order Value: $80.00

%

COGS as % of revenue — unlocks profit-adjusted ROAS

Return on Ad Spend
4.0x
You earn $4.00 for every $1.00 spent on ads
Cost Per Acquisition
What each new customer costs you in ad spend
$20.00
per customer
Revenue Per Dollar Spent$4.00

What this means: Your ROAS of 4.0x means you earn $4.00 for every $1 spent on ads. Each customer costs $20.00 to acquire with an average order value of $80.00. Make sure your attribution model is accurate at this level — multi-touch attribution often inflates ROAS.

ROAS Benchmarks

ROASWhat It Means
Below 1xLosing money on every dollar spent
1-2xBreakeven to slim margin (common for new brands)
2-3xHealthy — covering costs with room for growth
3-4xStrong — scaling profitably
4x+Excellent — but make sure attribution is accurate

These benchmarks assume ~40% product costs. If your margins are thinner, you need a higher ROAS to be profitable. Toggle on "Product Cost" above to see your profit-adjusted ROAS.

Understanding ROAS

1

Calculate Your Total Ad Spend

Add up everything you spent on paid advertising across all channels — Meta, Google, TikTok, Pinterest. Include both the ad platform spend and any agency or management fees.

2

Measure Revenue from Ads

Track the revenue attributed to those ads. Use your ad platform’s conversion tracking or Shopify’s UTM attribution. Be aware that different attribution windows (1-day, 7-day, 28-day) will give different numbers.

3

Divide Revenue by Spend

Revenue ÷ Ad Spend = ROAS. A result of 4.0x means you generated $4 in revenue for every $1 spent. Simple, but this number alone doesn’t tell the full story.

4

Adjust for Product Costs

This is the step most calculators skip. A 4x ROAS on a product with 40% COGS means your profit-adjusted ROAS is only 2.4x. Toggle on Product Cost above to see your real return.

Why ROAS Matters for Ecommerce

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Know if your ads are profitable

Revenue ≠ profit. A 3x ROAS on a 50% margin product means you’re barely breaking even after COGS, shipping, and fees. Always check profit-adjusted ROAS before celebrating a “profitable” campaign.

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Set realistic budgets

If your target ROAS is 4x, you know every $1,000 in spend should generate $4,000 in revenue. Use this to forecast budgets, plan scaling, and set expectations with stakeholders.

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Compare channels

Meta vs Google vs TikTok — which channel gives you the best return? Calculate ROAS per channel to allocate spend to the winner and cut the underperformers.

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Know when to invest in retention

If your ROAS is declining as you scale, that's diminishing returns on acquisition. Email and retention marketing often delivers 30-40x ROI with zero ad spend. Know your margins before scaling further.

When to Use This Calculator

Monthly Ad Performance Review

Run this calculator after pulling your monthly ad reports. Compare ROAS across channels to identify which platforms deserve more budget and which need optimization.

Planning BFCM Ad Budgets

Before Black Friday/Cyber Monday, model different spend scenarios. If your target ROAS is 3x and you plan to spend $50K, you need $150K in attributed revenue to justify the investment.

Evaluating a New Ad Channel

Testing TikTok Ads or Pinterest? Run early results through the calculator to compare against your established channels. Give new channels 2-3 weeks of data before judging.

Pitching Budget Increases to Stakeholders

Show leadership the math: current ROAS, cost per acquisition, and profit-adjusted returns. Data beats opinions when requesting bigger ad budgets.

Comparing Acquisition vs Retention Spend

Calculate your ROAS, then compare your CPA to customer lifetime value. If your LTV is 5x your CPA, you might be underinvesting in acquisition. If it's 1.5x, you need better retention.

Related Tools

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Profit Margin Calculator

Calculate your true profit per order after all variable costs

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LTV Calculator

Calculate customer lifetime value to set profitable CAC targets

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Discount Margin Calculator

See how discounts impact your margins before running a sale

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