ROAS calculator and formula

ROAS is the revenue you earn for each dollar of ad spend. Enter both numbers to get your ROAS, or switch tabs to find the revenue or budget a target ROAS needs.

Your ROAS

4.00x

Every $1 of ad spend brought in $4.00 of revenue.

Sample numbers shown. Type over them with yours.

As a percentage
400%
Revenue minus ad spend
$9,000

Is that profitable? Find your break-even ROAS

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How do you calculate ROAS?

Divide the revenue from your ads by what you spent on those ads. $12,000 of revenue from $3,000 of ad spend is a ROAS of 4, often written 4x, 4:1 or 400%. Google Ads uses the percentage form, so $5 in sales for each $1 spent is a 500% target ROAS.

  • ROAS = ad revenue ÷ ad spend
  • ROAS % = (ad revenue ÷ ad spend) × 100
  • Revenue needed = ad spend × target ROAS
  • Ad budget = revenue goal ÷ target ROAS

ROAS worked example

A hypothetical store spends $3,000 on Google Shopping ads in a month, and the ads bring in $12,000 of purchases. Its gross margin is 40%.

  1. Divide revenue by ad spend: $12,000 ÷ $3,000 = a ROAS of 4.00x, or 400%.
  2. Work out gross profit: $12,000 × 40% = $4,800.
  3. Take off the ad spend: $4,800 − $3,000 = $1,800 left over.

At a 40% margin the store breaks even at a ROAS of 2.5, so this campaign clears it comfortably.

What is a good ROAS?

A good ROAS sits above your break-even point, and that depends on your margin. As a market reference, 2026 medians for ecommerce brands are 1.88 on Meta and 3.27 on Google Ads. Platform numbers can flatter some channels, so check them against the revenue in your own books.

What is a good ROAS?
Channel and segmentROAS
Meta ads, all ecommerce brandsMedian. Triple Whale1.88x
Google Ads, all ecommerce brandsMedian. Triple Whale3.27x
Apparel & Accessories on MetaMedian. Triple Whale2.24x
Apparel & Accessories on Google AdsMedian. Triple Whale3.99x
Beauty on MetaMedian. Triple Whale1.54x
Beauty on Google AdsMedian. Triple Whale2.81x
Google brand search, as the platform reports it5.72x after Common Thread’s incrementality adjustment. Common Thread Collective19.07x
Google non-brand search, as the platform reports it6.97x after adjustment. Common Thread Collective9.30x
Meta acquisition, as the platform reports it2.07x after adjustment. Common Thread Collective1.83x
LinkedIn ads, B2BGoogle Search 67%, Meta 51%. Dreamdata121%

Triple Whale’s medians and Common Thread’s figures come from different brands and methods, so don’t read one against the other. Common Thread’s adjusted figures use its own geo tests and media mix models.

What is ROAS in marketing?

ROAS stands for return on ad spend. It shows how much revenue your advertising brings in for each dollar you put into it. A ROAS of 3 means $3 of revenue for every $1 of ads. Teams use it to compare campaigns and channels, and to set targets in bidding tools.

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend only. ROI compares profit with everything you spent, including product costs, tools and people. A 4x ROAS can still lose money, because at a 20% margin you need 5x to break even. Our guide on measuring marketing ROI covers the full method.

Is a 4x ROAS good?

A 4x ROAS is good if your margin before ad spend is above 25%, because that’s where 4x breaks even. At a 50% margin it leaves real profit. At a 20% margin it loses money. Run your own margin through the break-even ROAS calculator before you call any ROAS good.

Why is my ROAS in Google Ads higher than my store revenue suggests?

Ad platforms count conversions with their own attribution rules, so two platforms can each claim the same order. Add up platform ROAS across channels and it often exceeds what the store really took. Our guide on attribution that over-credits ads shows how to check this before you change budgets.

Should ROAS include agency fees and tool costs?

Standard ROAS counts media spend only, so agency fees and tools sit outside it. That keeps campaign comparisons simple, but it flatters the channel. To see the full picture, use marketing efficiency ratio, which divides total revenue by total marketing spend, or a proper ROI calculation that includes every cost.

ROAS is only as good as the conversions behind it. If your ad platforms and your store disagree, our analytics and tracking work finds out why and fixes it at a fixed price.

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