ROAS Calculator – Free Online Return on Advertising Spend Tool

We all know that advertising is a great way to promote your brand, products, and services. But in today’s marketing world, you need to have a sense of what return you can expect from the investment you’re making in advertising. That’s what your Return on Advertising Spend (ROAS) tells you. For most companies, the ROAS is one of the most important metrics for evaluating the performance of their advertising campaigns.

What is ROAS Formula?

To calculate ROAS (Return on Advertising Spend), you can use the formula:
ROAS = Revenue / Budget Cost * 100%
Revenue – revenue received from the advertising campaign;
Budget Cost – budget spent on the advertising campaign.

What is a good ROAS?

It depends on the margins and profitability of the business and depends on many other factors.
But the basis is that if it is more than 100%, then the ROAS is good (profitable).

Why is ROAS important?

Understanding the ROAS will allow a company to determine whether its marketing strategies are working. If the ROAS is positive, the company is making a profit from its marketing efforts; otherwise, the ROAS is negative, and the company is losing money. Businesses depend on the ROAS to be profitable.
Alex Zaremsky