PPC
ROAS Calculator
Calculate Return on Ad Spend from revenue and ad costs.
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ROAS Benchmarks
- • 4x+ - Excellent performance
- • 3x-4x - Good, healthy campaigns
- • 2x-3x - Average, room for improvement
- • 1x-2x - Break-even to marginal
- • <1x - Losing money on ads
How to Use
- 1 Enter your total revenue generated from ads
- 2 Enter your total ad spend for the same period
- 3 See your ROAS as both a multiplier (e.g., 3.5x) and percentage (350%)
- 4 Review the profit/loss amount and performance assessment
What is ROAS?
Return on Ad Spend (ROAS) measures the revenue generated for every pound spent on advertising. A ROAS of 4x means you earned £4 in revenue for every £1 spent on ads.
ROAS vs ROI
ROAS only considers ad spend and revenue. ROI accounts for all costs (product costs, overheads, etc.). A "profitable" ROAS depends on your profit margins - a 2x ROAS might be a loss if your margins are below 50%.
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