Business

ROAS Calculator

Measure advertising revenue returned for every dollar spent.

MyToolPantry.comROAS Calculator

ROAS Calculator result

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Scenario AAll assumptions are visible.

Attributed revenue ($)Ad spend ($)Target ROAS (×)Refunded or canceled attributed revenue ($)

Primary result5×Return on ad spend

Return on ad spend5×Net attributed revenue$10,000.00Revenue per ad dollar$5.00Revenue needed at target ROAS$8,000.00Revenue above target$2,000.00

What this means: Net attributed revenue meets or exceeds the entered ROAS target.

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Formula, assumptions & limitations

Inputs used: Attributed revenue ($); Ad spend ($); Target ROAS (×); Refunded or canceled attributed revenue ($).

Method: ROAS = (attributed revenue − entered refunds/cancellations) ÷ ad spend. Target revenue = ad spend × target ROAS.

ROAS measures revenue efficiency, not profit or incrementality. Refunds cannot exceed attributed revenue. Use the same attribution window for revenue and spend. Product costs, discounts, agency fees, organic demand, repeat purchases and cross-channel effects are excluded.

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How this tool works

Return on ad spend is net attributed revenue after entered refunds ÷ advertising spend; the target comparison uses ad spend × target ROAS.

Assumptions

Attributed revenue, refunds, and advertising spend use one attribution window. ROAS is revenue efficiency, not profit or incremental lift.

Limits to know

ROAS measures attributed revenue, not profit. Attribution window, refunds, discounts, repeat purchases, agency fees, product margin, and cross-channel effects can change the economic result.