ROAS Calculator
Calculate your true Return on Ad Spend and understand your advertising profitability.
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How to Calculate ROAS
ROAS (Return on Ad Spend) is calculated by dividing the revenue generated from advertising by the total ad spend. The formula is simple:
ROAS Benchmarks by Industry
| Industry | Avg ROAS | Top Performers |
|---|---|---|
| E-commerce | 4.0x | 8-12x |
| SaaS / B2B | 5.0x | 10-15x |
| Lead Generation | 3.5x | 7-10x |
| D2C Brands | 3.0x | 6-9x |
| Professional Services | 6.0x | 12-20x |
Frequently Asked Questions
What is ROAS?
ROAS (Return on Ad Spend) is a marketing metric that measures revenue generated for every dollar spent on advertising. A 4x ROAS means you earn $4 for every $1 spent on ads.
What is a good ROAS?
A good ROAS varies by industry, but generally 3x-5x is considered healthy for e-commerce, while B2B companies often target 5x-10x due to higher customer lifetime values.
How is ROAS calculated?
ROAS = Revenue from Ads / Cost of Ads. For example, if you spend $10,000 on ads and generate $40,000 in revenue, your ROAS is 4.0x.
What is the difference between ROAS and ROI?
ROAS only measures ad spend vs. ad revenue. ROI (Return on Investment) factors in all costs including COGS, team salaries, and overhead. ROAS can be positive while overall ROI is negative.
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