ROAS (Return On Ad Spend) Calculator
Written by Thierno Sadou Diallo, formula verified per our methodology • Last checked on 9/9/2026
ROAS is calculated with revenue generated ÷ ad spend. For €8,000 in revenue generated with €2,000 in spend, the ROAS is 4.0, or 400%: every euro spent on advertising generated €4 in revenue.
Explanation
ROAS (Return On Ad Spend) measures how much revenue an advertising campaign generates for every euro spent, expressed either as a multiplier (a ROAS of 4.0 means €4 of revenue per euro spent) or as an equivalent percentage (400%). One essential point not to confuse: ROAS relates the GROSS revenue generated to ad spend, without deducting production, shipping, or other costs tied to the sale — unlike classic ROI (return on investment), which relates NET PROFIT (once all costs are deducted) to the total investment. A ROAS of 4.0 doesn't automatically mean a profitable campaign if the margin on the products sold is thin: a business with a 20% margin needs a ROAS well above 1.0 to be truly profitable, generally at least 5.0 depending on its cost structure, while a ROAS of exactly 1.0 would already mean a net loss once production costs are factored in. ROAS nonetheless remains the fastest and most widely used metric for comparing the relative effectiveness of different ad campaigns, ahead of a finer analysis incorporating actual margins. For other complementary advertising metrics (cost per click, cost per thousand impressions), see our CPM and CPC calculator; for the cost of acquiring a customer rather than the revenue generated, our customer acquisition cost calculator.
Example: €8,000 in revenue for €2,000 in spend
Inputs
Revenue generated: €8,000. Ad spend: €2,000.
Calculation
ROAS = 8,000 ÷ 2,000 = 4.0, or 400%.
Result
This campaign generates €4 of revenue for every euro spent on advertising.
Frequently asked questions
What is the difference between ROAS and ROI?
ROAS relates GROSS revenue generated to ad spend, without deducting any additional costs. ROI (return on investment) relates NET PROFIT, once all costs are deducted (production, logistics, other expenses), to the total amount invested. A high ROAS therefore doesn't guarantee a positive ROI if margins on the products sold are thin.
What ROAS should you aim for to be profitable?
This depends entirely on the margin on the products or services sold: the thinner the margin, the higher the ROAS needed to be truly profitable. A business with a 50% margin can be profitable at a ROAS close to 2.0, while a business with a 10% margin needs a much higher ROAS, often 8.0 or more, to generate a net profit once all costs are accounted for.
Does ROAS include indirect sales influenced by the advertising?
This depends entirely on the attribution method used to count the revenue generated: a strict attribution model (last click only) counts only sales directly traceable to the campaign, while a broader model can include a share of indirectly influenced sales. This calculator applies the formula to the revenue you enter, whatever attribution method was used upstream.