If you're running ads, the big question is: Are they making you money?
That’s where ROAS (Return on Ad Spend) comes in. ROAS tells you exactly how much revenue you're generating for every dollar spent on advertising. If your ROAS is high, your ads are working. If it’s low, you might be burning cash on ineffective campaigns.
To make things easier, we built this free ROAS Calculator so you can quickly measure your ad performance. Just enter your total revenue and ad spend, and we’ll do the math for you.
Why ROAS Matters for Your Business
Understand ad profitability – Know if your campaigns are actually making money.
Optimize ad budgets – Shift your budget to campaigns that perform best.
Compare different ad channels – See which platforms (Google Ads, Facebook Ads, etc.) give you the highest returns.
Now, let’s break down how ROAS works and how to use this calculator to make better ad decisions.
ROAS Formula & Calculation
ROAS (Return on Ad Spend) is a simple but powerful metric that shows how much revenue you earn for every dollar spent on advertising. Here’s the formula:
ROAS = Total Revenue from Ads/Total Ad Spend
Breaking It Down:
Total Revenue from Ads → The total sales or revenue generated directly from your ads.
Total Ad Spend → The total amount you spent on advertising.
Example Calculation
Let’s say you run Facebook ads for your eCommerce store:
You spend $1,000 on ads.
Those ads generate $5,000 in revenue.
Now, let’s plug it into the formula:
ROAS = 5000/1000 = 5.0
This means your ROAS is 5.0, or 500%, meaning for every $1 you spent, you made $5 in return.
How to Use the ROAS Calculator
Using the ROAS Calculator is simple. Just follow these steps:
Step 1: Enter Your Total Revenue from Ads
This is the total amount of money your ads generated in sales.
Example: If your Google Ads campaign brought in $10,000 in sales, enter 10,000 in the revenue field.
Step 2: Enter Your Total Ad Spend
This is the total amount you spent on advertising for that revenue.
Example: If you spent $2,500 on Google Ads, enter 2,500 in the ad spend field.
Step 3: Get the result
If your ROAS is below 1.0 → Your ads are costing you more than they’re making. You need to adjust your strategy.
If your ROAS is 1.0 → You’re breaking even.
If your ROAS is above 1.0 → You’re profitable, but there’s always room for optimization.
If your ROAS is 4.0 or higher → Your ads are performing well, and you might consider scaling up.
Ways to Improve Your ROAS
If your ROAS isn’t where you want it to be, don’t panic. There are several proven strategies to optimize your ad spend and increase your return. Here’s how you can improve your ROAS:
1. Optimize Ad Targeting
Use detailed audience segmentation to show ads to the right people.
Exclude irrelevant audiences that waste your ad budget.
Leverage lookalike audiences (Facebook Ads) or custom intent audiences (Google Ads) to reach high-converting users.
2. Improve Ad Creatives & Copy
Test multiple variations of ad creatives, headlines, and descriptions.
Use high-quality images/videos that grab attention.
Focus on clear calls to action (CTA) that tell users exactly what to do.
3. Adjust Bidding & Budget Strategy
Use automated bidding strategies like Target ROAS (Google Ads) to maximize returns.
Shift ad spend towards top-performing campaigns and cut underperforming ones.
Experiment with manual bidding for better cost control.
4. Optimize Landing Pages
Make sure your landing pages match the ad message (don’t send users to a generic page).
Improve page speed and mobile responsiveness - slow pages kill conversions.
A/B test different headline, layout, and CTA placements to increase conversion rates.
5. Leverage Retargeting & Remarketing
Show ads to people who visited your site but didn’t convert (retargeting).
Use email sequences to follow up with warm leads.
Offer limited-time discounts or incentives to bring back hesitant buyers.
6. Cut Out Wasted Ad Spend
Identify high-cost, low-converting keywords and pause them.
Exclude placements that drive low-quality traffic (e.g., mobile app ad placements that lead to accidental clicks).
Monitor ad frequency—showing the same ad too many times can cause ad fatigue.
Try the ROAS Calculator Now
ROAS is one of the most important metrics for measuring ad success. By tracking your ROAS and optimizing your campaigns, you can spend smarter, increase profitability, and grow your business.
Use the ROAS Calculator above to measure your ad performance and start making data-driven decisions today. The more you track and optimize, the more profitable your ads will be.