AdGraam
Start free

Free tool · No sign up

ROAS Calculator for Meta and Google Ads

Type in the revenue your ads brought in and what you spent, and see your return on ad spend as a multiple and a percentage. Switch modes to find the revenue a target ROAS needs or the most you can spend, and add your margin to see profit after ads. It is free, needs no sign up and works in your browser.

Your numbers

What to work out

Purchase value your ads brought in

Share of revenue left after product costs. Fill it in to see profit

Result

Your ROAS

4.2x

ROAS as a percentage
420%
Ad spend as a share of revenue
23.81%

You get ₹4.20 in revenue back for every ₹1 you spend on ads.

How to use it

  1. 1

    Pick what to work out

    Choose ROAS, the revenue you need for a target ROAS, or the most you can spend on ads.

  2. 2

    Type your numbers

    Copy revenue and spend from Ads Manager or Google Ads for the same dates. Commas are fine.

  3. 3

    Read the result

    See ROAS as a multiple and a percentage, and add your gross margin to see what is left after ad spend.

How to calculate ROAS

ROAS, or return on ad spend, is the revenue your ads brought in divided by what you spent on them. Multiply it by 100 if you want it as a percentage.

Say a skincare brand spends ₹50,000 on Meta ads in a month, and Ads Manager shows ₹2,10,000 in purchase value. ROAS is 2,10,000 divided by 50,000, which is 4.2x, or 420%. Every ₹1 on ads brought back ₹4.20 in sales. In dollars it works the same way: $3,000 of spend and $9,600 of revenue is a ROAS of 3.2x.

Turn it around to plan. The revenue you need is target ROAS times spend, and the most you can spend is expected revenue divided by target ROAS.

ROAS is not profit

A 4x ROAS sounds healthy, but ROAS counts revenue, not what you keep. Product cost, shipping, payment fees, GST and returns all come out of that revenue before any of it is profit.

Add your gross margin to the calculator to see the difference. With ₹2,10,000 in revenue, a 40% margin leaves ₹84,000 of gross profit, and after ₹50,000 of ad spend you keep ₹34,000. At a 20% margin the same campaign loses ₹8,000.

The ROAS where you stop losing money is 1 divided by your margin, so 2.5x at a 40% margin. For an answer that includes GST, shipping, fees and RTO, use the break even ROAS calculator.

How to read your ROAS

There is no single good ROAS. A number is good when it is above your own break even ROAS, and better when it beats what the same product did in your past campaigns.

Compare like with like: the same date range, the same attribution setting and the same type of campaign. A retargeting campaign aimed at past visitors and a prospecting campaign aimed at new people rarely show the same ROAS, and both can be worth running.

What moves ROAS

ROAS rises when each rupee of ad spend brings in more revenue. These are the levers most D2C brands can pull:

  • Order value: bundles, combos and free shipping thresholds raise revenue per order without raising the cost of the click.
  • Conversion rate: a fast product page, clear prices, COD and reviews turn more clicks into orders.
  • Creative: ads people stop for and click on can bring the cost of each visit down, while tired ads get pricier as the same people see them again.
  • Targeting: spend less on audiences that click but rarely buy.

Questions people ask

What is ROAS in marketing?

ROAS stands for return on ad spend. It is the revenue from ads divided by what those ads cost, so ₹2,00,000 of sales from ₹50,000 of spend is a ROAS of 4x. Meta Ads Manager shows it as purchase ROAS.

How do you calculate ROAS?

Divide the revenue your ads brought in by the amount you spent on them. ₹2,10,000 divided by ₹50,000 is 4.2x. Multiply by 100 for a percentage, which is 420% here.

What is a good ROAS?

Good depends on your own margins, not on another brand's number. Work out your break even ROAS from your price, product cost, shipping, fees and returns, and anything above it makes money. Then try to beat your past campaigns for the same product.

Is ROAS the same as ROI?

No. ROAS compares revenue with ad spend only. ROI compares profit with everything you put in, including product cost, shipping and salaries, so a campaign can show a 3x ROAS and still lose money.

What is the difference between ROAS and ACoS?

ACoS, used on Amazon, is ad spend divided by sales, the flip of ROAS. A 4x ROAS is a 25% ACoS. The calculator shows both: ROAS, and ad spend as a share of revenue.

Why is my ROAS in Ads Manager different from my store?

Ads Manager counts the purchases it can link to an ad within its attribution window, at the value your pixel or Conversions API sends, usually with GST and before returns or refused COD orders. Your store counts every order its own way. Pick one source and compare it with itself over time.

More free ad tools

See all free ad tools