Free ROAS Calculator
Calculate your Return on Ad Spend (ROAS) and measure your advertising efficiency
What is ROAS?
Return on Ad Spend (ROAS) is a marketing metric that measures the revenue generated for every dollar spent on advertising. It's a key performance indicator that helps you evaluate the effectiveness of your advertising campaigns and optimize your marketing budget.
How to Calculate ROAS
The ROAS formula is straightforward:
For example, if you generate $2,000 in revenue from $500 in ad spend, your ROAS would be 4x.
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Frequently Asked Questions
What is a good ROAS?
A good ROAS depends on your industry and business model. Generally, a ROAS of 4:1 ($4 in revenue for every $1 spent) is considered good for most businesses. However, some industries might be profitable at 2:1, while others need 6:1 or higher to maintain profitability.
How can I improve my ROAS?
Improve your ROAS by optimizing your targeting, testing different ad creatives and messages, improving your landing page conversion rate, adjusting bid strategies, and focusing on high-value customers. Regular testing and optimization are key to improving ROAS over time.
How is ROAS different from ROI?
While ROAS measures revenue generated per dollar of ad spend, ROI considers the total profit by factoring in all costs (not just ad spend). ROAS is more specific to advertising performance, while ROI gives a broader picture of business profitability.