Free Advertising Tool

ROAS Calculator — Return on Ad Spend

Q: How do you calculate ROAS?

ROAS = (Revenue generated from ads ÷ Total ad spend) × 100 (or expressed as a multiplier like 4x / 400%). For example: $20,000 ad revenue from $5,000 ad spend → $20,000 ÷ $5,000 = 4.0x ROAS (400%).

Q: What is a good ROAS?

A 4:1 (400%) ROAS is considered a healthy benchmark for most eCommerce and paid media campaigns. High-margin digital products can operate profitably at 2:1 (200%), while low-margin retail businesses may require 6:1 (600%) to break even after COGS and fulfillment costs.

Q: What is the difference between ROAS and ROI?

ROAS measures revenue per dollar of direct ad spend (Revenue ÷ Ad Spend). ROI accounts for total costs including agency fees, software, COGS, and overhead ((Net Profit ÷ Total Investment) × 100).

Q: How do you calculate Target ROAS?

Target ROAS = 1 ÷ Gross Margin %. If your gross profit margin is 25%, your break-even Target ROAS is 1 ÷ 0.25 = 400% (4.0x). Any campaign above 4.0x generates net profit.

Calculate your Return on Ad Spend (ROAS) multiplier and percentage instantly, with 2026 ad platform benchmarks for Google, Meta, TikTok, and Amazon Ads.

✓ Multiplier & % modes ✓ 2026 Benchmarks ✓ No signup

Start Calculating

Total Ad Spend

Revenue Generated from Ads

Return on Ad Spend (ROAS)

400% (4.0x)

$15,000 Net Ad Revenue

4.0x ROAS Multiplier

$4.00 Return per $1 Spent

Ad Revenue Breakdown

Definition

Return on Ad Spend (ROAS) measures the gross revenue generated for every dollar spent on advertising. It is the fundamental metric used by performance marketers to evaluate ad campaign profitability on platforms like Google Ads, Meta Ads, and TikTok.

ROAS Formula

ROAS = (Ad Revenue ÷ Ad Spend) × 100

Example: $20,000 revenue generated from a $5,000 Google Ads campaign = ($20,000 ÷ $5,000) × 100 = 400% ROAS (4.0x).

ROAS Benchmarks by Platform — 2026

Updated July 2026

Ad Platform	Typical ROAS	Range
Google Search Ads	400%	250–700%
Google Shopping Ads	450%	300–800%
Meta Ads (Facebook/IG)	280%	150–500%
TikTok Ads	220%	100–400%
Amazon Sponsored Products	550%	350–900%
LinkedIn Ads (B2B)	200%	100–350%

Frequently Asked Questions

How do you calculate ROAS?

ROAS = (Revenue generated from ads ÷ Total ad spend) × 100 (or expressed as a multiplier like 4x / 400%). For example: $20,000 ad revenue from $5,000 ad spend → $20,000 ÷ $5,000 = 4.0x ROAS (400%).

What is a good ROAS?

A 4:1 (400%) ROAS is considered a healthy benchmark for most eCommerce and paid media campaigns. High-margin digital products can operate profitably at 2:1 (200%), while low-margin retail businesses may require 6:1 (600%) to break even after COGS and fulfillment costs.

What is the difference between ROAS and ROI?

ROAS measures revenue per dollar of direct ad spend (Revenue ÷ Ad Spend). ROI accounts for total costs including agency fees, software, COGS, and overhead ((Net Profit ÷ Total Investment) × 100).

How do you calculate Target ROAS?

Target ROAS = 1 ÷ Gross Margin %. If your gross profit margin is 25%, your break-even Target ROAS is 1 ÷ 0.25 = 400% (4.0x). Any campaign above 4.0x generates net profit.