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ROAS Calculator

Determine your Return on Ad Spend (ROAS) to evaluate paid media profitability across PPC and paid social channels.

Calculator Inputs

Live
Currency:
₹
₹100₹500,000
₹
₹100₹2,000,000
Calculation Results
Return on Ad Spend (ROAS)
0.4x
ROAS Percentage: 40%
Net Profit from Ads
-₹3,000
Ad Spend
₹5,000
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Reserved Ad Space

How to use the ROAS Calculator

  1. 1Enter total ad spend budget for the campaign period.
  2. 2Enter total gross revenue directly attributed to that ad spend.
  3. 3View the ROAS ratio, ROAS percentage, and net marketing revenue.

How ROAS is Calculated

ROAS is the ratio of gross revenue generated for every dollar invested in advertising.

Mathematical Formula
ROAS Ratio = Revenue / Ad Spend ROAS (%) = (Revenue / Ad Spend) × 100 Net Revenue = Revenue - Ad Spend
Formula Variables & Logic

Revenue represents gross conversions value, and Ad Spend is the media budget spent on advertising networks.

Worked Example: Paid Search Campaign
Sample Calculation
Scenario: An online retailer spends $4,000 on Google Search Ads and records $18,000 in online orders.
Step-by-step breakdown
  1. 1ROAS Ratio = $18,000 / $4,000 = 4.50x
  2. 2ROAS Percentage = 4.50 × 100 = 450.00%
  3. 3Net Revenue = $18,000 - $4,000 = $14,000
Estimated Result
The campaign achieved a 4.50x (450%) ROAS.

What affects ROAS results

  • Conversion rates of your website landing page.
  • Targeting precision and audience qualification.
  • Average Order Value (AOV) and customer repeat purchase rate.
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Reserved Ad Space

Frequently Asked Questions

What is a break-even ROAS?

Break-even ROAS is 1 / Profit Margin. If your product margin is 40%, your break-even ROAS is 1 / 0.40 = 2.5x (250%).

How is ROAS different from ROI?

ROAS only measures direct ad spend against revenue, whereas ROI accounts for product manufacturing costs, overhead, and operating expenses.

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