Marketing returns
Return on Ad Spend Calculator
Measure attributed revenue per unit of advertising spend with an explicit revenue-to-spend ratio.
Use ROAS to compare attributed advertising revenue with media spend. Use MER instead for total business revenue against all marketing costs.
What the result means
A 4x result means four units of attributed revenue for each unit of media spend, not four units of profit. Compare it with the product's break-even ratio before judging profitability.
The formula
Attributed revenue / advertising spend
Results are displayed to at most two decimal places. Calculations use the unrounded inputs.
A worked example
Put the formula to work
- Attributed revenue (currency)
- 12,000
- Advertising spend (currency)
- 3,000
Attributed revenue per unit of ad spend: 4x
A campaign credited with 12,000 revenue on 3,000 media spend has a 4x ROAS.
How to use this calculator
- Select one campaign and a consistent reporting window.
- Reconcile its attributed revenue with refunds and the chosen attribution rules.
- Divide that revenue by the matching media spend.
- Compare the ratio with a contribution-based break-even target.
Why this number matters
ROAS separates campaign revenue yield from budget size, making it easier to see whether added spend is producing sufficient attributed sales.
Input definitions
- Attributed revenue (currency)
- Revenue credited to the campaign using one stated attribution model and conversion window.
- Advertising spend (currency)
- Media spend for the same campaign and period; must be greater than zero.
Assumptions and limitations
- Platforms can credit the same sale more than once across channels.
- Revenue is not profit; goods, labor, fees, and overhead are outside the ratio.
- Attributed conversions are not necessarily incremental conversions.
Methodology
The default result and worked example use the same calculation functions as the interactive tool. The formula cannot verify the quality or scope of your source data.
Read our calculation methodology
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