📊 Profitability Metric

ROAS Calculator

ROAS = Revenue ÷ Ad Spend. Use it to measure if your ads are profitable.

Formula: Revenue ÷ Ad Spend
Enter Data
Revenue attributed to the campaign.
Total amount spent on ads.
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Improve ROAS
Increase conversion rate + reduce CPC + raise AOV.
Result
Enter values and click Calculate.
Formula: ROAS = Revenue ÷ Ad Spend

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Calculate supporting metrics
CTRCPCCPMConversion Rate
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Improve landing pages

What is ROAS and why it matters?

ROAS tells you how much revenue you earn for every ₹1 or $1 spent on advertising. Higher ROAS usually means better campaign targeting, stronger creatives, and better landing pages.

Which business can use ROAS?

  • E-commerce stores (best KPI for product ads)
  • Lead generation (track qualified lead value)
  • Service businesses running performance marketing
  • App installs & subscription funnels (value-based tracking)

External learning: Google Ads conversion value.

FAQs

Depends on margins. Many businesses target ROAS 3x–5x, but the right ROAS depends on your costs.

Improve conversion rate, remove low-performing placements, and test new creatives + landing page speed.

ROAS compares revenue to ad spend only. ROI includes all costs (COGS, operations, salaries, etc.).
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