What does a ROAS calculator measure?
It measures attributed revenue divided by ad spend. A result of 4 means four units of attributed revenue for each unit of spend in the numbers you entered.
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ROAS calculator
Calculate return on ad spend from revenue and ad spend, with the formula shown.
Not sure what to enter? Start with a complete example.Fill the form in one click, run it as-is, or edit the example into your own business.
Runs locally
Example output
Sample inputs, not a benchmark: attributed revenue 1,000 and ad spend 250. Revenue divided by spend is 4, so this ROAS calculator result is 4.0. That means four units of attributed revenue per unit of spend. It does not say the ads were profitable, incremental, or comparable to another channel.
How to use it
- Enter the revenue you are willing to attribute to the ads, and the ad spend for the same period.
- Run the ROAS calculator. The result is revenue divided by spend.
- Read the notes that separate this ratio from profit and from return on investment.
- If the ratio looks acceptable, open the CAC and LTV calculator before you scale the budget.
FAQ
Is ROAS the same as profit?
No. ROAS ignores product cost, fees, discounts, returns, and the cost of the team that runs the ads. A high ratio can still lose money.
Which revenue number should I enter?
Use the revenue definition you can defend: platform-attributed, last click, or your own order data. Do not mix two definitions in one run.
Sources
- Google Ads Help glossary: ROAS Defines ROAS as a percentage: total conversion value divided by total spend. This page divides the revenue you enter by the spend you enter and shows a ratio, not a percent. It does not read a Google Ads account. Verify by dividing the two inputs yourself. The ratio is not profit.
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