Creator Operations Desk
ROAS Calculator
Calculate return on ad spend from attributed revenue and ad spend. Check media buying efficiency locally, then compare the result with margin and break-even targets.
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Calculate ROAS
What does ROAS measure?
ROAS, return on ad spend, shows how much attributed revenue is generated for every unit of advertising spend. It is a quick media-efficiency measure, but it does not subtract product cost, fulfilment, refunds or labour.
ROAS formula
ROAS = attributed ad revenue ÷ ad spend. Ad spend must be greater than zero. The result is usually a multiple: a ROAS of 4 means each $1 of ad spend produced $4 of attributed revenue.
Worked ecommerce example
An ecommerce campaign spends $5,000 and produces $20,000 in attributed revenue, giving a 4x ROAS. Profit still depends on product cost, shipping, platform fees, discounts and refunds.
How to use
- Enter revenue attributed to the ads.
- Enter actual ad spend for the same reporting period.
- Calculate the multiple, then compare it with margin, CPA and break-even targets.
Frequently asked questions
What is a good ROAS?
There is no universal target. The safe threshold depends on gross margin, fulfilment, platform, discount and return costs, so calculate your break-even ROAS first.
Can ROAS be zero?
Yes. When spend is greater than zero and attributed revenue is zero, ROAS is 0x, showing that no revenue has yet been attributed to the ads.
Should revenue include tax?
Either method can work, but it must match your cost and reporting convention. Keep the same revenue definition when comparing campaigns.