Free Tool
ROAS Calculator
Work out your return on ad spend in seconds. Enter the revenue and ad spend from a campaign to see your ROAS and ROI, and whether it is pulling its weight.
Run the numbers
Calculate your ROAS
Enter the revenue a campaign generated and the amount you spent on it. The calculator returns your ROAS as a multiple and your ROI as a percentage.
What it means
What is ROAS
ROAS stands for return on ad spend, the revenue earned for every rand spent on advertising, calculated as revenue divided by ad spend. A ROAS of 4.8x means every R1 spent returned R4.80 in revenue. It is the headline metric for judging whether paid advertising is working.
ROAS is expressed as a multiple or a ratio. ROI, by contrast, is the profit as a percentage: ROI = ((revenue minus ad spend) / ad spend) x 100. This calculator shows both from the same two numbers.
The formula
How to calculate ROAS
The formulas are:
ROAS = revenue / ad spend
ROI = ((revenue - ad spend) / ad spend) x 100
Worked example: R90,000 revenue from R20,000 spend gives a ROAS of 4.5x and an ROI of 350%. Use revenue that is genuinely attributable to the campaign for an honest figure.
Benchmarks
What is a good ROAS
A common rule of thumb is that a 4x ROAS, R4 back for every R1 spent, is healthy for many businesses, but the real answer depends on your profit margins. A business with thin margins needs a higher ROAS to profit; one with high margins can thrive on less. Our campaigns average a 4.8x ROAS, roughly double the typical benchmark. See our services to put that to work.
Frequently asked questions
ROAS Calculator: FAQ
How do I calculate ROAS?
Divide the revenue a campaign generated by the amount you spent on it. For example, R90,000 revenue from R20,000 ad spend is a ROAS of 4.5x.
What is the difference between ROAS and ROI?
ROAS is revenue divided by ad spend, shown as a multiple like 4.5x. ROI is profit as a percentage: ((revenue minus spend) / spend) x 100. ROAS measures return, ROI measures profitability.
What is a good ROAS?
A 4x ROAS is often considered healthy, but it depends on your margins. Low-margin businesses need a higher ROAS to profit. Juicy Designs campaigns average 4.8x, about double the typical benchmark.
Does a high ROAS mean I am profitable?
Not on its own. ROAS uses revenue, not profit. A 4x ROAS on a product with a 20% margin may barely break even. Always read ROAS against your margins and costs.