Let's Talk
Menu
Let's Talk

ROAS Calculator

Calculate return on ad spend. Then put it in context.

Use revenue and media spend to calculate ROAS, then look beyond the ratio to margins, customer value and the mix of new versus returning customers.

Use the calculator Audit your account →
ROAS measurement

Calculate your ROAS

Revenue from ads divided by ad spend.

ROAS0.00x
Revenue from ad spend÷Ad spend=ROAS

The ratio is a starting point

ROAS is useful. It is not the whole decision.

01

Margin changes the target

A 5x ROAS can be healthy for one product and unprofitable for another. Gross margin determines how much room the media program actually has.

02

Customer value changes the window

First-order revenue may understate performance when repeat purchases or contract value create revenue later.

03

Customer mix changes the story

Blended ROAS can look strong while returning customers absorb most of the budget. New and existing customer performance should be separated when the data allows it.

04

Attribution changes the confidence

The number is only as reliable as the tracking behind it. Separate what paid media influenced from what the data can actually prove.

Use the number well

Connect the platform result to the business result.

The useful question is not whether ROAS is high or low in isolation. It is whether the return supports your margins, growth goals and customer economics.

For e-commerce

Compare ROAS with contribution margin, new-customer revenue, repeat purchase behavior and product-level profitability.

For lead generation

ROAS may be less useful than cost per qualified lead, pipeline value, close rate and customer acquisition cost.

For both

Review the time window and attribution model before treating a single ratio as the final answer.

When the number feels wrong

Check the account before changing the target.

A weak ROAS can come from targeting, structure, feed quality, landing pages, tracking or the offer itself. Increasing or reducing budget before identifying the constraint can make the wrong problem larger.

A PPC audit reviews the account and the measurement underneath it, then orders the findings by expected impact.

See PPC Audit Services →

Want a second set of eyes on the number?

Tell us what the program is spending, what the business is trying to achieve and where the measurement feels unclear.

Start a conversation