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Universal · Buy-Side calculator

ROAS (Return on Ad Spend)

ROAS is the revenue generated for every dollar of advertising.

Formula

ROAS = Revenue ÷ Ad spend

Fill in any 2 fields. The one you edited longest ago is solved for you.

input
Dollars.
input
Dollars.
waiting
Waiting for the other fields.

Waiting for 2 values to solve ROAS.

What is ROAS?

ROAS is the revenue generated for every dollar of advertising. A 4x ROAS means four dollars back for each one spent, before product costs, so compare it against your break-even ROAS rather than to 1x.

Worked example

If revenue is $48,000 and ad spend is $12,000, then ROAS = 4.00x.

ROAS = Revenue ÷ Ad spend

Formula variable breakdown

revenueRevenue
Enter revenue directly, or leave it blank and let the solver calculate it from the other 2 fields.
spendAd spend
Enter ad spend directly, or leave it blank and let the solver calculate it from the other 2 fields.
roasROAS(output)
Enter ROAS directly, or leave it blank and let the solver calculate it from the other 2 fields.

Tactical application guide

ROAS links revenue and ad spend in a fixed ratio, so any two pin down the third. Planning backwards is where it earns its keep: enter the revenue you have and the ROAS you are targeting, and the solver tells you the ad spend you must secure. Or lock ad spend and ROAS from a benchmark to see the revenue that plan implies before you commit.

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