What is a ROAS calculator?
ROAS is your ‘return on ad spend’. Usually displayed as a percentage, your ROAS can help you to gauge the effectiveness and monetary return on your advertising campaigns.
The calculation for PPC ROAS is as follows...
Return on ad spend = total revenue generated by ads, divided by the cost of ad spend.
The results of using our ROAS calculator can help to inform your decision to continue spending money on ads, to change the type of ads you are paying for, or to stop paying for ads altogether.
How to read your ROAS result
ROAS is usually given as a percentage of your original costs of advertising. Out of a 200% ROAS, for example, you will have gained back the cost of your ads, and received the same amount of money in profits.
You should rethink your advertising strategy if your ROAS is under 400% - you're probably losing money from your advertising campaigns due to the additional costs of running ads, such as transaction fees.
It is generally advisable to aim to keep your ROAS above 800% to avoid any losses
