ROAS (Return on Ad Spend) is a key digital marketing metric that measures how much revenue you earn for every dollar you spend on advertising. It helps marketers understand the effectiveness and profitability of their ad campaigns.
A higher ROAS indicates a more successful campaign, while a lower ROAS suggests that the campaign may not be generating enough revenue to justify the ad spend.
Our free ROAS Calculator helps you quickly calculate your Return on Ad Spend, giving you insight into how much revenue your business earns for every dollar spent on advertising. Whether you're running Facebook Ads, Google Ads, or any digital marketing campaign, knowing your ROAS is crucial to optimizing performance and scaling profits.
For example, if you spent $500 on ads and earned $2,000 in revenue, your ROAS would be:
This means you earned $4 for every $1 spent on advertising, indicating a successful campaign.
Understanding your ROAS helps you make informed decisions about your advertising budget, allowing you to allocate resources effectively and maximize your return on investment.
| Industry | Good ROAS |
|---|---|
| E-commerce | 400% (4:1) |
| Retail | 300% (3:1) |
| Travel & Hospitality | 200% (2:1) |
| Finance & Insurance | 500% (5:1) |
| Real Estate | 600% (6:1) |
| Education | 400% (4:1) |
| Health & Wellness | 300% (3:1) |
| Automotive | 200% (2:1) |
| B2B Services | 500% (5:1) |
| Non-Profit | 200% (2:1) |