ROAS Calculator
Calculate how much revenue you earn for every dollar spent on advertising.
Return on ad spend
3.91x· 390.63%
For every $1 spent on ads, you generated $3.91 in revenue.
ROAS = $12,500 ÷ $3,200 = 3.91x
How to Use the ROAS Calculator
- 1Enter the revenue generated from your ads.
- 2Enter the amount you spent on those ads.
- 3Check your ROAS as a ratio and percentage.
A 4x ROAS means every $1 spent on advertising generated $4 in revenue.
Improve more than your ad spend
Ads bring traffic — your website still has to convert it. WiserNotify shows real-time purchases, reviews, visitor activity, and urgency so more of your paid clicks turn into customers.
What is a good ROAS?
There isn’t a single number that works for everyone. A good ROAS depends on how much profit you keep after each sale — not just how much revenue the ad generated. The main factors to consider:
- Product margins and cost of goods
- Shipping, fulfillment, and payment fees
- The advertising channel (search, social, display)
- Customer lifetime value and repeat purchase rate
- Discounts, promotions, and returns
Many ecommerce brands look at a 3x–5x range as a starting point, but profitability always depends on your margins. A 2x ROAS can be strong for a high-margin product and losing money on a low-margin one.
ROAS vs ROI
ROAS and ROI are related but measure different things.
ROAS
Ad revenue ÷ Ad spend
Measures how efficiently your advertising generates revenue.
ROI
Profit after broader costs
Measures overall profitability — ads, product, shipping, fees, overhead.
Use ROAS to compare campaigns and channels. Use ROI to decide whether the business as a whole is making money.
Related tools
Conversion Rate Calculator
See how lifting your conversion rate changes revenue from the same ad traffic.
Use toolMarketing Budget Calculator
Plan how much to spend across channels before you measure ROAS on each one.
Use toolCustomer Lifetime Value Calculator
Factor repeat purchases into your ROAS target — not just the first order.
Use toolProfit Margin Calculator
Check whether your ROAS is actually profitable once product costs come out.
Use toolFrequently asked questions
What is a good ROAS?
There's no universal target. Many ecommerce brands aim for 3x–5x, but what counts as profitable depends on your margins, product costs, shipping, fulfillment fees, and customer lifetime value. A 2x ROAS can be healthy on a high-margin digital product and loss-making on a thin-margin physical one.
How do you calculate ROAS?
Divide the revenue generated by an ad campaign by the amount you spent on it. ROAS = Revenue from Ads ÷ Ad Spend. For example, $12,500 in revenue on $3,200 of spend equals 3.91x, or 391%.
What's the difference between ROAS and ROI?
ROAS measures advertising efficiency — revenue returned per ad dollar. ROI measures overall profitability — profit after broader costs like product, shipping, fees, overhead, and labor. A campaign can have strong ROAS but weak ROI once those costs are deducted.
Can a high ROAS still be unprofitable?
Yes. ROAS only compares revenue to ad spend. If product cost, shipping, payment fees, discounts, and overhead eat most of the revenue, even a 5x ROAS can lose money. Always compare ROAS to your contribution margin per order.
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