ROAS Calculator

How do you use the ROAS calculator?

Enter revenue and ad spend for the same ads and the same date range. The calculator shows ROAS as a multiple straight away.

1. In Ads Manager, set the date range and select the campaigns you want to measure.
2. Copy amount spent and purchase conversion value (the revenue Meta attributes to the ads).
3. Enter both numbers above.
4. To see whether that ROAS covers your costs, open the break-even ROAS calculator with your price and variable costs.
5. Copy the page link to share the result. Only the numbers are stored in it.

What is the ROAS formula?

ROAS is revenue divided by ad spend. Meta calculates purchase ROAS as purchase conversion value divided by amount spent, and the Amazon Ads "Ads Math" guide gives the same formula: revenue attributed divided by ad spend.

ROAS = revenue ÷ ad spend

A ROAS of 1.0 means the ads brought back exactly what they cost in revenue. It does not mean break-even, because the revenue still has to pay for the product, shipping and fees.

Worked example

Enter these numbers in the calculator above (example numbers, in any currency):

The tool shows the same result:

Now compare it with a break-even ROAS. In the break-even ROAS calculator example, a product sells for 150 and costs 90 per order in variable costs, a 40 percent contribution margin, so break-even ROAS is 1 ÷ 0.40 = 2.5. A ROAS of 3.0 is above that, so the attributed orders cover their ad cost with some margin left. A ROAS of 2.0 at the same margin would not.

How is ROAS different from ROI and break-even ROAS?

ROAS, ROI and break-even ROAS answer three different questions. The table shows which to use when.

Use ROAS to compare ads and campaigns with each other. Use break-even ROAS as the line to compare them against. The contribution margin calculator gives you the margin that break-even ROAS needs.

What raises ROAS?

ROAS can be split into three parts: conversion rate, average order value and CPC. Each one points at a different change.

ROAS = conversion rate × average order value ÷ CPC

Check it with the ad metrics calculator example: 50 purchases from 3,000 clicks is a conversion rate of about 0.0167, revenue of 7,500 from 50 orders is an average order value of 150, and CPC is about 0.83. Then 0.0167 × 150 ÷ 0.83 = 3.0, the same ROAS.

In this split, creative shows up mainly in CPC: at the same CPM, an ad more people click on costs less per click. The CTR calculator shows that link.

What are the limits of this calculator?

The calculator divides two numbers. Whether the result is useful depends on where those numbers come from.

• Attributed revenue. Ad platforms count revenue under their attribution setting. Some of those sales might have happened without the ad, and some sales the ad caused may not be counted.
• First purchase only. ROAS ignores repeat orders that happen after the attribution window. If customers reorder, see the LTV calculator.
• No benchmarks. The tool gives no "good" or "bad" verdict. A ROAS that makes money for a high-margin product can lose money for a low-margin one.
• Same period and scope. Spend and revenue must cover the same campaigns and dates.

Related tools and glossary entries

See the ROAS glossary entry and the break-even ROAS entry. The ad metrics calculator shows ROAS next to CPM, CTR, CPC and CPA from one form, and the CPA calculator shows the same result as a cost per order. All free tools are on the tools page.

If you want more creative to test for a higher ROAS, see how Anglr works for brands.