ROAS (Return on Ad Spend) Calculator

What Is ROAS?

Return on Ad Spend (ROAS) is a performance metric that measures the revenue generated for every dollar spent on advertising.

• A higher ROAS means better return.
• A lower ROAS may indicate that you’re overspending or not converting efficiently.

In addition to ROAS, it’s also important to look at ACOS (Advertising Cost of Sales) and your Total Profit or Loss to see if your ad campaigns are actually profitable.

Formulas and Equations

1. Advertising Cost of Sales (ACOS)

ACOS shows what percentage of your revenue was spent on advertising.

$\text{ACOS ($

2. Total Profit or Loss

This shows how much money you gained or lost after advertising costs are deducted from revenue.

$\text{Profit/Loss} = \text{Total Sales Revenue} - \text{Total Advertising Cost}$

Example Calculation

Let’s say:

• Total Advertising Cost = $2,000
• Total Sales Revenue = $5,000

Step 1: Calculate ACOS

$\text{ACOS} = \left( \frac{2000}{5000} \right) \times 100 = 40\%$

Step 2: Calculate Profit/Loss

$\text{Profit/Loss} = 5000 - 2000 = 3000$

So, you spent $2,000 and earned $5,000 — you gained $3,000, and your advertising cost of sales was 40%.

Final Thoughts

ROAS, ACOS, and Profit are key indicators of marketing success. Our ROAS Calculator makes it simple to evaluate campaign performance and make smarter ad-spend decisions.