ROAS Calculator

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.