ROAS calculator
ROAS tells you how much revenue every dollar of ad spend brings in. Enter your revenue and spend to see yours.
ROAS = revenue from ads ÷ ad spend
Fill in the boxes and your result appears here, instantly.
How many different ads can your budget test?
Enter your budget to see how many distinct ads it can test.
How to use the ROAS calculator
- 1Enter the revenue your ads generated, from Ads Manager or your store.
- 2Enter what you spent on those ads over the same period.
- 3Read your ROAS. A result of 3 means $3 of revenue for every $1 spent.
- 4Compare it with your break-even ROAS to see whether the ads are profitable.
How ROAS is calculated
Return on ad spend is revenue divided by ad spend. If your ads brought in $9,000 of sales on $3,000 of spend, your ROAS is 3.0, often written 3x or 300 percent.
Use the same date range for both numbers, and be clear about the attribution window you are reading. Meta's default window counts purchases within a set number of days after a click or view, so it can differ from what your store reports.
ROAS is not profit
A ROAS of 3 sounds healthy, but it says nothing about your margin. If your product costs you 70 percent of its price once shipping and fees are in, a 3x ROAS barely covers costs. ROAS only means something next to your break-even ROAS, the point where an ad pays for itself.
Use the break-even ROAS calculator on this site to find that line, then judge your ads against it.
Raising your ROAS
There are two levers: bring in more revenue per click, or pay less per click. Better offers and landing pages help the first. Stronger creative helps the second, because ads people respond to are shown more cheaply.
The fastest way to learn which creative works is to test several clearly different ads side by side, then put more budget behind the winner.
Frequently asked questions
- What is a good ROAS?
- A good ROAS is one above your break-even ROAS. A 2x ROAS is great for a high-margin product and a loss for a low-margin one, so there is no universal target.
- What is the ROAS formula?
- ROAS equals revenue from ads divided by ad spend. Revenue of $5,000 on $1,000 of spend is a ROAS of 5.
- Is ROAS the same as ROI?
- No. ROAS compares revenue with ad spend only. ROI compares profit with total cost, including product cost, shipping and other expenses.
- Why does Ads Manager show a different ROAS from my store?
- Meta counts purchases using its attribution window and can credit views as well as clicks. Your store counts every order and may credit other channels. Treat each as a view of the same thing, and be consistent about which one you use.
- Does a higher ROAS always mean more profit?
- Not always. Pushing for a very high ROAS can mean spending too little and missing sales. Many brands accept a lower ROAS to grow, as long as it stays above break-even.
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