ROAS Calculator: Return on Ad Spend
Measure how much revenue your advertising generates for every dollar spent.
Revenue attributed to your ads in this period. Use the same attribution window as your ad spend.
Total amount paid to ad platforms (Google, Meta, LinkedIn, etc.) in the same period.
Return on Ad Spend (ROAS)
4.00:1
Revenue Generated
$200,000
Return on Ad Spend
4.0:1
Below break-even · near break-even · above break-even · 1.5x+ strong
LTV:CAC is strong
Unit economics support growth. Monitor payback and channel-level CAC as you scale.
Open ltv cac calculator →Strong ROAS
Profitable ad efficiency. Test incremental budget on top-performing campaigns.
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How it works
Return on Ad Spend (ROAS) shows campaign profitability. A ROAS of 4:1 means $4 in revenue for every $1 spent. ROAS alone does not account for margins, pair it with break-even ROAS to understand true profitability.
Frequently Asked Questions
What is ROAS?
ROAS stands for Return on Ad Spend, the revenue generated from advertising divided by the amount spent on ads. A ROAS of 4:1 means you earn $4 in revenue for every $1 spent. It is the primary efficiency metric on Google Ads, Meta, LinkedIn, and most paid media platforms.
How do you calculate ROAS?
ROAS = Revenue from Ads ÷ Ad Spend. Example: $200,000 in ad-attributed revenue ÷ $50,000 ad spend = 4:1 ROAS. Use the same attribution window for both numbers. For SaaS, consider 30–90 day windows since trial-to-paid conversion often takes longer than e-commerce purchase cycles.
What is a good ROAS?
A "good" ROAS depends on your gross margin, not a fixed industry number. Compare ROAS to your break-even ROAS (1 ÷ gross margin): at 75% margin, break-even is 1.33:1. E-commerce often targets 3:1–4:1; B2B SaaS may be profitable lower if margins are high and LTV exceeds first-touch revenue. Never celebrate ROAS above 1:1 without checking margins.
What is the difference between ROAS and ROI?
ROAS measures revenue per ad dollar, a top-line efficiency ratio used for campaign optimization. ROI measures net profit as a percentage of total investment: ROI = (Revenue − Cost) ÷ Cost. ROAS ignores COGS, overhead, and fulfillment; ROI reflects actual profitability. Use ROAS for daily campaign decisions and ROI (or contribution margin) for business-level analysis.
Should I use gross or net revenue for ROAS?
Use gross revenue for platform-level campaign comparison since ad dashboards report gross figures. For profitability analysis, subtract returns, discounts, and refunds to get net revenue, or better yet use contribution margin. SaaS teams should eventually model LTV-based ROAS, ad spend vs lifetime customer value, for the most accurate picture of ad profitability.
How is ROAS different for SaaS vs e-commerce?
E-commerce sees immediate revenue per click; SaaS revenue is delayed by free trials, sales cycles, and subscriptions. A 7-day ROAS report will under-credit SaaS ads because leads convert weeks later. SaaS advertisers should extend attribution windows (30–90+ days) and weight conversion values by customer quality or LTV rather than first-month revenue alone.
What is a good ROAS for Google Ads?
For Google Ads, compare ROAS to your break-even ROAS (1 ÷ gross margin). At 75% margin, break-even is 1.33:1. SaaS with high margins may be profitable at 2:1+ if LTV exceeds first-touch revenue. Use our break-even ROAS calculator and Growth Dashboard to model profitability with your actual margins.
Related Calculators
Break-even ROAS
Determine the minimum ROAS required to break even after accounting for gross margin and other variable costs.
CAC Calculator
Measure how much you spend to acquire each new customer by dividing total acquisition spend by new customers acquired.
Budget Planner
Reverse-engineer the marketing spend needed to hit revenue targets based on funnel metrics and CAC.
Funnel Planner
Model conversion rates at each funnel stage to forecast leads, opportunities, and closed revenue.