ROAS Calculator and Formula: How to Calculate Return on Ad Spend

Quick Answer: How do you calculate ROAS?

To calculate ROAS, divide the revenue your ads brought in by what you spent on those ads. The ROAS formula is ROAS = ad revenue ÷ ad spend, so $4,000 of revenue from $1,000 of spend is a 4x ROAS, or 400%. Enter both numbers in the calculator below to get your ROAS as a ratio, a percentage and ACOS, plus the matching entries for Google Ads and Meta.

ROAS stands for return on ad spend. It measures revenue, not profit, so a ROAS can look healthy while you still lose money. Profit-Aware mode below adds your margin and fixed costs to show whether the ads actually pay for themselves.

On this page

• ROAS calculator
• What is ROAS?
• What is the ROAS formula?
• How do you calculate ROAS step by step?
• Which revenue and ad spend should you enter?
• How do Google Ads, Meta, Microsoft and Amazon show ROAS?
• Is my ROAS good?
• How does ROAS connect to CPA, CPC and conversion rate?
• How should lead generation businesses calculate ROAS?
• Frequently Asked Questions

ROAS calculator

Type your ad revenue and ad spend for the same campaigns and dates. Results update as you type and nothing is sent anywhere. Open the optional sections to clean up revenue, check profit, plan for a target, or total several campaigns at once.

Want a second pair of eyes on the numbers behind your ROAS? We check tracking, conversion values and margins before we touch bids.

What is ROAS?

ROAS (return on ad spend) is a marketing metric that shows how much revenue you earn for each dollar you spend on ads. A ROAS of 4 means every $1 of ad spend brought in $4 of revenue. It is a ratio of revenue to ad cost, so it says nothing about product costs, fees or profit on its own.

Ad platforms each have their own name for it. Google Ads calls it Conv. value / cost, which it calculates by dividing total conversion value by the total cost of your ads (Google Ads Help). Microsoft Advertising calls it return on ad spend (Microsoft Learn), and Amazon Ads uses ROAS next to ACOS (Amazon Ads). For how ROAS differs from return on investment, see our ROAS vs ROI guide.

What is the ROAS formula?

The ROAS formula is ROAS = revenue from ads ÷ cost of those ads. To show it as a percentage, multiply the result by 100. So $6,000 of revenue from $1,500 of spend gives 6,000 ÷ 1,500 = 4, written as 4x, 4:1 or 400%. All three mean the same thing: $4 back for every $1 spent.

• ROAS (ratio) = ad revenue ÷ ad spend
• ROAS (%) = ad revenue ÷ ad spend × 100
• ACOS (%) = ad spend ÷ ad revenue × 100 = 100 ÷ ROAS

Is ROAS a ratio or a percentage?

ROAS is a ratio that you can also write as a percentage. The platforms do not agree on which to use, which makes it easy to enter a target in the wrong format. Google Ads wants a percentage (Google Ads Help), while Meta wants a ratio, written to three decimals in its own example (Meta Business Help). Every row below is the same result.

How do you convert ACOS to ROAS?

Divide 100 by the ACOS percentage. A 25% ACOS is 100 ÷ 25 = 4x ROAS, and a 4x ROAS is 100 ÷ 4 = 25% ACOS. Amazon describes ROAS as the inverse of ACOS (Amazon Ads). The calculator shows both, so you never have to convert by hand.

How do you calculate ROAS step by step?

Pick one period and one set of campaigns, then divide revenue by spend for exactly that scope. A common cause of a wrong ROAS figure is mixing scopes, such as store revenue for a month against one platform’s spend for a week. Follow these four steps and the number will hold up when someone checks it.

1. Choose the date range and the campaigns you want to measure, for example all Google Ads Shopping campaigns for October.
2. Take the revenue for that scope. Use the conversion value your ad platform reports, or orders you can tie to those ads in your store.
3. Take the ad spend for the same scope and dates, straight from the platform’s cost column.
4. Divide revenue by spend. Multiply by 100 if you need a percentage, or divide 100 by the ROAS to get ACOS.

Example (illustration): Shopping campaigns drove $12,500 in conversion value from $2,500 of spend in October. ROAS = 12,500 ÷ 2,500 = 5x, or 500%, and ACOS = 100 ÷ 5 = 20%.

How do you calculate ROAS in Excel or Google Sheets?

Put campaign names in column A, spend in column B and revenue in column C, the same order the calculator’s multi-campaign box reads. Then use =IFERROR(C2/B2,"") for the ratio, which leaves the cell blank when a row has no spend. Format that cell as a percentage to show 4 as 400%. For an account total, divide the sums, =SUM(C2:C20)/SUM(B2:B20), and never average the ROAS column.

Why should you never average campaign ROAS?

Averaging gives every campaign equal weight, no matter how much it spent. Small, high-ROAS campaigns then inflate the total. Account ROAS has to be total revenue ÷ total spend. The multi-campaign section of the calculator does this for you and shows the wrong average next to it.

Which revenue and ad spend should you enter?

Enter the revenue the ads earned and only the money you paid the ad platform, for the same campaigns and dates. If your revenue includes sales tax or VAT, or you refund a share of orders, use the clean-up section. Agency fees and tools are real costs, but they belong in Profit-Aware mode, not in ROAS itself.

To work out your margin per order with shipping, card fees and refunds, use our break-even ROAS calculator, then enter the margin it gives you here.

How do Google Ads, Meta, Microsoft and Amazon show ROAS?

Every platform calculates ROAS as revenue divided by spend, but each labels it differently and asks for targets in a different format. The table shows where to find ROAS and how a 4x target is typed in. The calculator’s target section prints these entries for any target you choose.

What does a 1.00 ROAS mean in Meta?

Meta calls a 1.00 ROAS goal break even: spend $100 and you get around $100 in purchase value (Meta Business Help). That only means revenue matches ad spend. Once product costs and fees come out, a 1.00 ROAS loses money, so set your goal from your real break-even ROAS instead.

Why does each platform report a different ROAS?

Each platform credits sales with its own attribution rules, and two of them can claim the same order. Google Ads, for example, uses data-driven attribution as the default for most conversion actions (Google Ads Help). Adding up the revenue Google and Meta each report can count the same order twice and overstate your return. Our ROAS discrepancy guide explains how to reconcile the numbers.

Is my ROAS good?

A ROAS is good when it is above your break-even ROAS, which depends on your margin. Break-even ROAS is 1 divided by your pre-ad contribution margin, so a 40% margin breaks even at 2.5x. Amazon Ads gives the same formula using gross profit margin (Amazon Ads); we use contribution margin because shipping and payment fees also come out of each sale.

A 4x ROAS is strong at a 50% margin and loses money at 20%. Use the table below, then compare against real account data.

For context, the median ROAS across the 14 ecommerce accounts in our own anonymized Google Ads data (October 2025 to September 2026) was 16.44x on brand Search, 5.62x on Standard Shopping, 4.95x on Performance Max and 3.09x on non-brand Search, with four to thirteen accounts behind each figure (Google Ads benchmarks). Brand campaigns look strong because people already searching for you are likely to buy. For why a high ROAS can still lose money, read contribution margin vs ROAS.

How does ROAS connect to CPA, CPC and conversion rate?

ROAS is the average order value divided by your cost per acquisition. Because cost per acquisition is cost per click divided by conversion rate, ROAS also equals conversion rate × average order value ÷ cost per click. That means only three levers move ROAS: conversion rate, order value and click cost.

• ROAS = average order value ÷ CPA
• ROAS = conversion rate × average order value ÷ CPC
• Example (illustration): a 2% conversion rate, an $80 order and a $0.40 click give 0.02 × 80 ÷ 0.40 = 4x

If ROAS drops, check which of the three moved first. Our guide to the metrics that improve ROAS maps each symptom to a fix, and the CPA calculator works out the cost per acquisition you can afford.

Need help finding which lever is broken in your account? Our team audits tracking, feeds and bidding against your margins.

How should lead generation businesses calculate ROAS?

Give each lead a value, then treat lead value as revenue. Value per lead = close rate × average deal value. Example (illustration): with a 20% close rate and a $2,000 average deal, each lead is worth $400.

Thirty leads from $3,000 of spend are then worth $12,000, a 4x ROAS (illustration). Switch to real closed revenue from your CRM once you have it.

Sending closed deals back to Google Ads lets bidding learn which leads turn into revenue. Our CRM tracking guide covers the setup.

Frequently Asked Questions

What is a 3x ROAS?

A 3x ROAS means you earned $3 in revenue for every $1 spent on ads, which is 300% as a percentage or about 33.3% ACOS. Whether it is profitable depends on your margin. At a pre-ad margin below about 33.3%, a 3x ROAS loses money.

What is the ROAS percentage formula?

ROAS percentage = ad revenue ÷ ad spend × 100. So $2,500 of revenue from $1,000 of spend is 250%. Google Ads uses this percentage format when you set a target ROAS.

Can ROAS be below 1?

Yes. A ROAS below 1, such as 0.8x, means the ads brought in less revenue than they cost. That happens with new campaigns or when tracking misses sales, so check conversion tracking before you cut anything.

Is ROAS the same as ROI?

No. ROAS divides revenue by ad spend, while ROI looks at profit after all costs. A campaign can show a strong ROAS and a negative ROI. Our ROAS vs ROI guide shows both with worked examples.

How do you calculate ROAS in Google Ads?

Add the Conv. value / cost column to your campaigns report. Google calculates it by dividing total conversion value by total cost. Multiply it by 100 to turn it into a target ROAS percentage.

Should ad spend in ROAS include agency fees?

Not in ROAS itself, which uses media spend only so you can compare it with what the platforms report. Agency fees still have to be paid, so enter them as extra period costs in Profit-Aware mode to see whether the ads cover them.

How often should I check ROAS?

Weekly is enough for most accounts, because daily ROAS swings. Meta recommends judging a ROAS goal on weekly averages and waiting at least seven days after a change. Microsoft suggests letting a bid strategy reach at least 30 conversions before you judge it.

What is the difference between target ROAS and actual ROAS?

Actual ROAS is the result you measured. Target ROAS is the return you ask a bid strategy to aim for, so it is a setting, not a result. Set the target from your break-even ROAS and your profit goal.

Does this ROAS calculator store my numbers?

No. The calculator runs in your browser, so nothing you type is sent to us or saved. Refreshing the page clears it.

Does this calculator show net profit?

It shows contribution after the costs you enter, not net profit. Overheads you leave out, such as rent, salaries and taxes, still have to be paid from that contribution.

Get a second opinion on your ROAS

Hustle Marketers offers a free first audit, valued at $500 by our team, so you can see how we read your account before you pay for anything. We check conversion tracking, conversion values, margins and bidding, then tell you which lever will move your ROAS first.

Our PPC management runs month to month with no lock-in, and you keep ownership of your ad accounts.