Use our ROAS Calculator to calculate the return of your campaigns.
ROAS stands for Return on Advertising Spend, and it is a metric used in digital marketing to measure the effectiveness and profitability of advertising campaigns. It provides insights into how much revenue is generated for every dollar spent on advertising.
The calculation for ROAS is relatively simple. It is determined by dividing the revenue generated from an advertising campaign by the cost of that campaign. The formula for ROAS is as follows:
ROAS = (Revenue from Advertising Campaign) / (Cost of Advertising Campaign)
A good ROAS value indicates that an advertising campaign is generating a high return on investment.
Using 800% as a benchmark, a ROAS of 800% or higher is considered excellent. ROAS values ranging from 400% to 800% are generally considered okay but have room for improvement. However, any ROAS below 400% is generally considered poor and indicates that the campaign is not generating enough revenue to cover the advertising costs effectively.