Roas Calculator

Marketing & Online Advertising infused with High-EQ

Calculate your Return On Ad Spend (ROAS)

Ad Spend

Revenue from Ad Spend

%

Enter your Ad Spend and the Revenue from Ad Spend into the simple ROAS calculator.

The formula is simple (Revenue from Ad Spend / Ad Spend ), but the understanding the results is not as straight-forward. To play it safe, you should have an 500% ROAS or more. If you have any less than 400% ROAS, you're probably losing money after taking in account all your other costs.

Your ROAS is %

This is not good. You need to make more than you spend on ads. If you are receiving any less than 400% ROAS

 

Your ROAS is %

There may still be room for improvement if you're in the 400-500% ROAS range.

Your ROAS is %

You're getting over 500% ROAS, you're probably in a good spot

Fill out your information below t get a personal  free quote from our team to help you fix your ROAS

%

What is ROAS

ROAS stands for “Return on Ad Spend.” As the full name implies, it tells you how much money you’re earning as a result of the amount you spend on advertising.

Return on ad spend is a calculation that measures the cost-effectiveness of advertising efforts. It can help businesses and other entities figure out if their advertising strategy is worth it or not.

When a business tries a new advertising campaign, they may compare the ROAS at the start of the campaign, at the mid-point, and at the end.

This can help determine whether they should renew the campaign or try another method of outreach.

Here’s how to calculate ROAS: divide the total revenue you earned from advertising by the amount you spend on advertising:

ROAS = (Revenue Earned From Advertising / Advertising Expense) x 100

For example, if you spend $3,000 on Google Ads and earned $6,000 from people who clicked on those ads, then your ROAS is $6,000 / $3,000 or 2. In accounting terms, that 2 means 200%.

Is it different to ROI?

Yes ROAS is not the same thing as ROI “Return of Investment“.

That’s because ROI is a measurement of strategic investment while ROAS is a measure of tactical spend.

One of the biggest differences between ROAS and ROI is that ROAS is a ratio derived from comparing how much you spend to how much you earn, while ROI accounts for the amount you make after paying your expenses.

The sole purpose of ROI is to determine whether the campaign is worth the investment or not. By taking the margin into account, you can quickly determine your overall profits and determine what your actual ROI is.

To calculate ROI, you should use the following formula:

ROI= (((Turnover x Margin Rate) – Expenses) / Expenses) x 100

For example, if you spent $100,000 on online marketing last year and earned $150,000 from your marketing, then your ROI is ($150,000 – $100,000) / $100,000 or .5. In accounting terms, that’s 50%.

Ready to Increase your Revenue?

Book a free consultation where we will discuss details about your business and analyse if Online Advertising will work for you.