Measure return on ad spend (ROAS) and evaluate marketing campaign profitability. Free calculator for marketers, SMBs, and advertising teams.
Measure return on ad spend (ROAS) and evaluate marketing campaign profitability. Free calculator for marketers, SMBs, and advertising teams.
Generated: 1/13/2026, 7:16:38 AM | AskSMB.io
Total amount spent on ads
Revenue directly attributed to ads
Campaign duration (e.g., 30 days)
Ad spend cannot be zero
ROAS (Return on Ad Spend)
0x
Primary profitability metric
ROAS Percentage
0%
ROAS expressed as a percentage
Net Profit from Ads
$0
Revenue minus ad spend
N/A
🔴 Poor: < 1.5x
🟡 Average: 1.5x - 3x
🟢 Strong: > 3x
ROAS (Return on Ad Spend) is a marketing metric that measures the revenue generated for every dollar spent on advertising. It's expressed as a ratio (e.g., 4:1 or 4.0x) or percentage (400%). ROAS helps marketers evaluate campaign effectiveness, compare different advertising channels, and make data-driven budget allocation decisions. Unlike ROI, which considers profit, ROAS focuses specifically on revenue relative to ad spend.
ROAS is crucial because it tells you whether your advertising is profitable and which campaigns deserve more budget. A high ROAS indicates efficient ad spending, while low ROAS signals the need for optimization. It enables quick performance comparisons across campaigns, platforms, ad sets, and creatives. For businesses with tight margins, monitoring ROAS prevents overspending on underperforming campaigns. It also helps forecast revenue based on planned ad budgets and justify marketing spend to stakeholders.
ROAS measures revenue per advertising dollar: Revenue ÷ Ad Spend. It's a top-line metric focused on ad efficiency. ROI (Return on Investment) measures profit (not revenue) relative to total costs: (Profit ÷ Total Investment) × 100. ROI considers all costs—product, shipping, overhead—while ROAS only looks at ad spend. A campaign can have 5x ROAS but negative ROI if product margins are low. Use ROAS for evaluating ad performance and ROI for overall business profitability decisions.
Good ROAS varies by industry, business model, and profit margins. General benchmarks:
Consider your profit margins when setting ROAS targets. If margins are 50%, you need at least 2:1 ROAS to break even. For 25% margins, you need 4:1 ROAS minimum.