ROAS Calculator
Instantly discover your ROAS with our free Return on Ad Spend calculator.
Calculate Your Total Ad Revenue
Start by entering the total revenue generated from your specific ad source into the first form field. This figure is crucial for determining the effectiveness of your ad spend.
Calculate Your Total Ad Spend
Next, input the total amount spent on the specific ad source into the second form field. This helps in accurately assessing your advertising investment.
Leverage Your ROAS Insights to Enhance Campaigns
Once you've entered both your revenue and ad spend, the calculator will provide your ROAS metric. Use this valuable insight to refine your ad strategies and maximize your campaign performance. Understanding this metric is key to optimizing your advertising efforts and achieving better results.
FAQ
ROAS, or return on ad spend, is a crucial metric for businesses that use paid advertising. It helps you see how much revenue you generate compared to your ad spending.
You can calculate ROAS using the formula below or use a free ROAS calculator like ours!
The formula shows whether you made a profit after deducting your ad costs from your earnings. A positive ROAS percentage means you brought in more money from your ads, but it doesn’t guarantee overall profit.
Example 1: If you earned $150 in sales from an ad that cost $200, your ROAS would be 75%. Despite the revenue, you lost $50, meaning the campaign wasn't profitable.
Example 2: If your ad generated $500 in sales with a spend of $400, your ROAS would be 125%. In this case, you made a profit of $100, indicating a successful ad campaign.
To manually calculate your Return on Ad Spend (ROAS) percentage, use this formula:
ROAS = (Revenue from Ads / Cost of Ads) x 100
This formula gives you a ROAS percentage that shows how effectively your ad spending generates revenue. A higher ROAS indicates that your advertising is more efficient, meaning you're earning more money for every dollar spent on ads.
Understanding what makes a "good" ROAS can be complicated, as it differs significantly across industries. Typically, a ROAS above 100% is considered favorable, indicating that you're at least covering your ad costs.
Generally, brands aim for the highest ratio possible. A 2:1 ROAS means a brand earns $2 for every $1 spent on ads, which is slightly above the industry average. Ideally, businesses strive for a ROAS percentage of 300% or higher.
However, what's considered good can vary based on your profit margins, ad budget, and overall goals.
To improve your ROAS on Amazon, focus on optimizing your product listings and targeting your ads to the right audience. Adjust your bidding strategies and regularly review your campaigns to make necessary changes. Enhancing the quality of your product images and descriptions can also help boost conversions and increase sales.
ROAS shows how much revenue you can expect from an ad campaign, while ACOS reflects the percentage of sales spent on advertising. Though they measure similar outcomes, they present the data differently. Using both metrics together can give you a clearer picture of your ad campaign performance.
