ROAS Calculator
Calculate your return on ad spend (ROAS) based on revenue and ad spend.
What is ROAS (return on ad spend)?
Return on ad spend (ROAS) measures how much revenue you generate for every dollar spent on advertising. It’s usually expressed as a ratio, like 4:1 (or 4x), meaning you earn $4 in revenue for every $1 in ad spend.
How to calculate ROAS
The ROAS formula is:
ROAS = Revenue from ads ÷ Ad spend
If you spend $10,000 and generate $40,000 in tracked revenue, your ROAS is 4.0 (or 4:1). The ROAS calculator lets you instantly see whether your campaigns are profitable at the channel, campaign, or ad-set level.
What is the average ROAS
Benchmarks differ by channel and industry, but recent 2024–2025 studies suggest:
- Google Ads: Median ROAS around 3.5:1, often higher in high-intent search campaigns. (cc: Focus Digital)
- Facebook / Meta Ads: Average ROAS often sits around 2.0–3.0x across industries, with some analyses reporting ~2.19–2.98x overall. (cc: Intensify)
- TikTok Ads: Typical ROAS for many e-commerce campaigns is lower than Google/Meta, often around 1.4–2.0x unless you have strong creative and retargeting.
- E-commerce overall: Average blended ROAS across all channels is currently reported around 2.5–3.0x. (cc: Upcounting)
What is a good ROAS?
“Good” ROAS is context-dependent, but common rules of thumb:
- For paid ads (prospecting), many e-commerce brands view 3–4x ROAS as good, assuming healthy margins.
- For retargeting campaigns, “good” can easily be 4–6x+ because you’re hitting warmer audiences.
- For high-margin or subscription businesses, a lower upfront ROAS (even 1.5–2x) can be acceptable if lifetime value is strong.
For organic/SEO, you don’t talk about ROAS in the paid-media sense, but you can compute return on marketing spend by dividing revenue influenced by organic by content/SEO costs. Well-performing organic programs typically deliver much higher effective ROAS than paid, but over a longer time horizon.