Free tool
ROAS Calculator
See how hard your ad spend is working. Enter what you spent and the revenue it generated to get your ROAS, your revenue per unit spent, and a plain-English read on whether it is healthy.
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Result
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The ROAS formula
Return on ad spend is one of the simplest marketing numbers there is.
ROAS = Revenue from ads ÷ Ad spendA ROAS of 3 means you earned 3 units of revenue for every 1 unit spent on ads.
Example calculation
You spend $1,000 on ads and they generate $3,500 in revenue. Your ROAS is 3,500 ÷ 1,000 = 3.5x, or $3.50 of revenue for every $1 spent.
What your ROAS means
- Below 1x: losing revenue before you even count costs.
- 1x–2x: weak unless your margins are unusually high.
- 2x–4x: potentially workable, depending on margin.
- 4x+: strong, depending on margin.
Common mistakes
- Treating ROAS as profit — it is revenue, before product and delivery costs.
- Comparing your ROAS to another industry's benchmark.
- Judging ROAS too early, before campaigns have enough data.
The number tells you where you are. Not what to do next.
A ROAS number tells you the score — not the next move.
Cleverlio decides what your business should do this week and writes the work — the posts, the messages, the website copy. You review it and publish it yourself.
See what Cleverlio would doCommon questions
What is a good ROAS?
It depends on your margins. As a rough guide, below 1x loses money, 1x–2x is weak, 2x–4x can work, and 4x+ is strong. A business with high margins can profit at a lower ROAS than one with thin margins.
What is the difference between ROAS and ROI?
ROAS measures revenue returned per unit of ad spend. ROI measures profit relative to total cost. ROAS is simpler for ad decisions, but ROI tells you whether you actually made money after all costs.
Is ROAS calculated before or after product costs?
Standard ROAS uses revenue, not profit, so it ignores product and delivery costs. That is why a "good" ROAS for one business can be a losing ROAS for another. Pair it with your break-even ROAS.
Why is my ROAS high but I am still not profitable?
ROAS ignores cost of goods, fees, shipping and overhead. A 3x ROAS on a low-margin product can still lose money. Check your break-even ROAS to see the minimum you need.
How do I improve ROAS?
Improve targeting and creative, tighten your offer, raise conversion rate on the landing page, and increase average order value. Cutting wasted spend usually moves ROAS faster than scaling.