ROAS Calculator

How to use the ROAS Calculator

1. Pick your currency. The label only changes how the result is shown; the maths is the same in USD, PKR, EUR, GBP or AED.
2. Enter your advertising spend. Use the total amount you paid the ad platform for the period you are checking — for example, the last 7 or 30 days of a Meta or Google Ads campaign.
3. Enter the revenue attributed to those ads. Take this figure from the same report and the same date range. In Meta Ads Manager it is usually “Purchase conversion value”; in Google Ads it is “Conv. value”.
4. Press Calculate. You will see ROAS as a ratio (for example 3.2x) and as a percentage (320%).

The ROAS formula

ROAS = Revenue from ads ÷ Ad spend

ROAS (return on ad spend) tells you how many units of revenue each unit of ad spend brought back. A ROAS of 4 means that every 1 dollar spent on ads produced 4 dollars in sales.

Worked examples

• Shopify store on Meta Ads: you spend $500 in a month and Ads Manager reports $1,750 in purchase value. ROAS = 1,750 ÷ 500 = 3.5x (350%).
• Local business on Google Ads: you spend PKR 60,000 and track PKR 150,000 in bookings. ROAS = 150,000 ÷ 60,000 = 2.5x.
• A campaign that loses money: spend $1,000, revenue $800. ROAS = 0.8x — you got back less than you spent, before counting any product costs.

What is a good ROAS?

There is no single “good” number, because it depends on your margins. A store selling products with a 70% gross margin can be profitable at 2x, while a store with a 25% margin may need 5x or more just to break even. That is why ROAS should always be compared with your break-even ROAS, not with a number someone else quotes online.

As a rough guide, many ecommerce advertisers treat 2–4x as a common range, but treat that only as a starting point. Your own costs decide whether a ROAS is good or bad.

Common mistakes when measuring ROAS

• Mixing date ranges. Spend from one week and revenue from another gives a meaningless number.
• Mixing attribution windows. A 7-day click window and a 1-day view window will report different revenue for the same ads.
• Treating ROAS as profit. ROAS ignores cost of goods, shipping, payment fees, returns and your own time. Use the profit margin calculator alongside it.
• Trusting platform numbers blindly. Ad platforms can over-count conversions. Compare their revenue with the real orders in your store dashboard.

Frequently asked questions

Is ROAS the same as ROI?

No. ROI subtracts all costs and compares profit with investment. ROAS only compares revenue with ad spend, so it is a quicker but less complete measure.

Should I include agency fees in ad spend?

For a pure platform ROAS, use only the money paid to the ad platform. If you want a fuller picture of marketing efficiency, run the calculation a second time with agency or creative costs added.

How often should I check ROAS?

Daily numbers move a lot. Weekly or monthly checks give a steadier view, especially for small budgets with few conversions.

Want to go deeper? Read our full guide: What Is ROAS? How to Calculate ROAS and Break-even ROAS.