ROAS Calculator

Revenue (₹):

Ad Spend (₹):

ROAS (Return on Ad Spend) is a metric used to measure the effectiveness of a digital advertising campaign. It tells you how much revenue is generated for every rupee spent on ads. Essentially, it helps you understand whether your ad campaigns are profitable or not.

ROAS Formula:

The formula for calculating ROAS is:

$$$$

$$\text{ROAS}=\frac{\text{Total Revenue from Ads}}{\text{Total Ad Spend}}$$

It can be expressed as a percentage by multiplying the result by 100:

$$$$

$$\text{ROAS (\%)}=\left(\frac{\text{Total Revenue from Ads}}{\text{Total Ad Spend}}\right)\times 100$$

Example:

Let’s say you spent ₹50,000 (Total Ad Spend) on a Facebook ad campaign, and from that, you generated ₹2,00,000 in revenue.

Using the formula:

$$$$

$$\text{ROAS}=\frac{2,00,000}{50,000}=4$$

So, the ROAS is 4, which means for every ₹1 spent on ads, you earned ₹4 in return.

To express this as a percentage:

$$$$

ROAS (%)=4×100=400%

Interpretation:

A ROAS of 400% means you're earning ₹4 for every ₹1 spent on ads. Generally, the higher the ROAS, the better your advertising performance is, indicating you're getting a good return on your investment.

Follow for more AI, Marketing & Automation Updates