ROAS Calculator
What is ROAS?
Return on Ad Spend (ROAS) is a vital metric used to measure the effectiveness of your online advertising campaigns. It indicates how much revenue was generated for every unit of currency that you spent on advertising. ROAS helps you to assess the profitability of your ad campaigns and decide how to allocate your budget for maximum returns.
How to use the ROAS calculator
To calculate your ROAS, enter the total revenue generated from your ad campaign and the total amount spent on advertising. The calculator will instantly provide your ROAS, showing you how much revenue you earned for each dollar spent on advertising.
ROAS formula
ROAS = revenue attributable to ads/ Cost of ads
When to calculate ROAS
ROAS should be calculated at regular intervals to continuously monitor and evaluate the performance of your ad campaigns over time. ROAS can be calculated separately for your search engine ads, banner ads, and social media ads so that you can identify which campaigns are delivering the best results and where you need to optimize.
Understanding the ROAS result
- A high ROAS indicates that your advertising campaigns are highly effective and that they are generating substantial revenue when compared to what you’re spending on ads.
- A low ROAS suggests that your campaigns may not be as effective. This signals a need for optimization in terms of your ad platform, messaging, or ad spend allocation.
How to calculate ROAS with example
Imagine you spent $2,000 on an ad campaign that generated $10,000 in revenue. You can calculate the ROAS as follows:
** ROAS = revenue attributable to ads/ Cost of ads **
ROAS = ($10,000 / $2,000) = $5
This means that for every $1 you spent on advertising, you earned $5 in revenue.
Popular Categories
Get 3X conversions
with interactive emails
Create & send interactive emails without coding
Put revenue on auto-pilot with pre-built journeys
Save time with AI-powered email content creation
1000+ businesses grew with Mailmodo, including