ROAS Calculator

Divide the revenue from your ads by the ad spend to get return on ad spend and the revenue left after paying for ads.

ROAS
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Revenue after ad spend
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Revenue is not profit. Check the result against your own margins.

In short

What is the ROAS Calculator?

ROAS, or return on ad spend, shows how many rupees of revenue each rupee of advertising brought in. A ROAS of 4x means ₹4 of revenue per ₹1 spent. Revenue is not profit, so compare the figure with your product margin before judging a campaign.

How it works

ROAS = revenue from ads / ad spend. Profit after ad spend here = revenue from ads minus ad spend. It ignores product cost, shipping, fees and taxes, so treat it as a first check rather than true profit. If ad spend is zero, ROAS shows zero.

How to use it

  1. Enter the total amount you spent on ads.
  2. Enter the revenue your ad platform or store attributes to those ads.
  3. Read the ROAS multiple and the revenue left after ad spend.
  4. Compare the ROAS with your break-even ROAS to see if it covers costs.
Questions

ROAS Calculator — FAQ

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend only. ROI compares profit with the full cost, so it accounts for product cost and other expenses.

Which revenue should I use?

Use the revenue attributed to the same ads and the same dates as the spend. Mixing periods or including organic sales inflates the result.

Can ROAS be below 1x?

Yes. It means the ads brought in less revenue than they cost. That may still make sense if customers return and buy again.

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