ROAS Calculator
ROAS = Revenue ÷ Ad Spend. A ROAS of 4x means you earn £4 for every £1 you spend on advertising.
How effective is your advertising? Return on Ad Spend (ROAS) tells you how much revenue you generate for every pound spent on advertising. It is one of the most important metrics for measuring campaign performance.
Use this calculator to work out your ROAS, find the revenue you need for a target ROAS, or calculate the maximum you should spend on ads.
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What this calculator does
This calculator works out your return on ad spend in three modes: calculate ROAS from actual revenue and spend, find the revenue needed for a target ROAS, or work out the maximum ad spend for a desired ROAS from known revenue.
Who it is for
Business owners, marketers, media buyers, and anyone running paid advertising campaigns on platforms like Google Ads, Facebook, Instagram, Amazon, or TikTok.
How to use it
Select a mode, enter your ad spend and revenue (or target ROAS), and click 'See My Result' to get an instant breakdown.
How the calculation works
ROAS = Revenue ÷ Ad Spend. A ROAS of 4.0x means every £1 of ad spend generates £4 in revenue. Note that ROAS measures revenue, not profit — you still need to cover your cost of goods and other expenses from that revenue.
Worked example
You spend £2,000 on Google Ads and generate £8,500 in revenue. ROAS = £8,500 ÷ £2,000 = 4.25x. For every £1 spent, you earned £4.25 in revenue. Net return = £6,500. Whether that is profitable depends on your margins.
Assumptions and limitations
- ROAS measures revenue, not profit — a high ROAS does not guarantee profitability if margins are low
- Does not account for cost of goods sold, staff time, agency fees, or other business costs
- Attribution models vary between platforms — the same sale may be counted differently on Google vs Facebook
- ROAS can be misleading for brand awareness campaigns where the goal is not direct sales
Frequently asked questions
What is a good ROAS?
It depends on your profit margins. A ROAS of 4x or higher is generally considered good. If your margins are thin (e.g. 20%), you may need a ROAS of 5x or more to break even after costs. If your margins are high (e.g. 70%), a ROAS of 2x could be profitable.
How do I calculate ROAS?
ROAS = Revenue ÷ Ad Spend. If you spent £1,000 on ads and generated £4,000 in revenue, your ROAS is 4.0x.
What is the difference between ROAS and ROI?
ROAS measures revenue per pound of ad spend. ROI measures profit relative to total investment. ROAS = Revenue ÷ Ad Spend. ROI = (Profit – Investment) ÷ Investment. ROAS is specific to advertising; ROI covers all costs.
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Related guides
- What is ROAS? Return on Ad Spend Explained — A plain-English guide to ROAS: what it means, how to calculate it, what counts as a good ROAS, and how it differs from ROI.
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Sources and references
Google Ads Help — About target ROAS bidding (https://support.google.com/google-ads/answer/6268637), Meta Business Help — Understanding ROAS (https://www.facebook.com/business/help)
Last updated
Last reviewed: 2026-04-12.