Mr Calcu | Unlock more profit from every ad dollar—see what’s working and scale with confidence.
Quickly calculate ROAS to boost performance and dominate ad strategy. Make smarter decisions and feel confident in your campaign investments.
ROAS Calculator Description
What is ROAS?
Return on Ad Spend (ROAS) is a key performance metric used in digital marketing to measure the revenue generated per dollar spent on advertising. It helps advertisers understand the efficiency of their campaigns and guides budget allocation decisions.
Formula
ROAS (%) = (Revenue from Ads / Cost of Ads) * 100
Example Calculation
If you spend $500 and earn $1,000 in revenue:
ROAS = ($1,000 / $500) * 100 = 200%
Why ROAS Matters
- It directly reflects the profitability of ad campaigns.
- It helps compare performance across channels and creatives.
- It identifies underperforming campaigns in need of optimization.
Common Edge Cases
- Multi-Channel Attribution: ROAS can be inflated or deflated if revenue is not accurately attributed to each ad source.
- Delayed Conversions: Long sales cycles can make short-term ROAS appear lower than actual profitability.
- Recurring Revenue Models: Initial ROAS may be low, but lifetime value (LTV) can improve results significantly.
- Seasonal Campaigns: Promotions may drive volume but reduce profit margins, impacting ROAS.
- App Installs or Lead Gen: Non-revenue conversions require alternative evaluation metrics like CPA or LTV.
Case Study 1: E-Commerce Brand
An online fashion retailer spent $10,000 on Facebook Ads, generating $35,000 in revenue.
- ROAS = (35,000 / 10,000) * 100 = 350%
- Result: The business increased its ad spend on top-performing ad sets.
Case Study 2: SaaS Business
A SaaS company invested $4,000 in LinkedIn Ads, generating $2,000 in monthly recurring revenue (MRR). With 10 new customers, the total LTV was $15,000.
- Short-Term ROAS = (2,000 / 4,000) * 100 = 50%
- Lifetime ROAS = (15,000 / 4,000) * 100 = 375%
- Insight: Subscription models should consider LTV in ROAS analysis.
How to Use This ROAS Calculator
- Enter your total ad spend.
- Enter the revenue generated from that ad campaign.
- The calculator returns your ROAS in percentage format.
Pro Tip: Segment ROAS by audience, device, or geography to identify high-performing subsets and refine your strategy.
Advanced Tips
- Use consistent attribution models across campaigns.
- Compare ROAS at the campaign, ad group, and keyword levels.
- Analyze trends over time to see the long-term impact of optimizations.
Start now to uncover hidden wins, cut wasted spend, and make every dollar work harder!