Calculate your ROAS instantly with ObserviX
Quickly find your return on ad spend and see how your campaigns perform compared to others in your industry.
What's Your ROAS?
Enter your ad spend and revenue to calculate your return on ad spend (ROAS) instantly. Then, see how your results stack up against industry benchmarks to understand campaign performance and efficiency.
Total amount spent on advertising
Revenue generated from the campaign
Enter your ad spend and revenue to calculate ROAS
How to interpret ROAS
ROAS (Return on Ad Spend) measures how effectively your advertising budget generates revenue. It's calculated by dividing total ad revenue by the cost of that campaign:
ROAS = Total Revenue ÷ Total Ad Spend
This metric is a practical way to evaluate the performance of a specific campaign—whether it's Google Ads, Facebook Ads, or other channels—and helps guide budget allocation and ecommerce strategy. While ROAS shouldn't be the sole indicator of business health, it's an effective tool to identify which campaigns are performing well and which need improvement.
What counts as a “good” ROAS?
There's no universal benchmark, as a “good” ROAS depends on:
- Your profit margins
- Industry standards
- Average cost per click
- Average order value
Many businesses aim for a 4:1 ROAS (4X), but the average across ecommerce is closer to 2X. Startups often require higher ROAS to cover costs and grow, while established businesses may succeed with lower ROAS. The key is to measure your ROAS in context and against competitors in your niche.
Going beyond ROAS
ROAS only considers ad spend versus revenue, but other costs like production, shipping, and staffing also impact profitability. To get a complete picture of your marketing efficiency, track ROAS alongside other metrics.
CAC (Customer Acquisition Cost)
Total spend on acquiring customers divided by the number of customers acquired. Compare this to your average order value and contribution margin to understand real profitability.
MER (Media Efficiency Ratio)
Total revenue divided by total marketing spend over a period. Use MER to see how efficiently your marketing budget generates revenue overall.
Use the ObserviX ROAS Calculator
To see your ROAS in action, enter your ad spend and revenue into the free ObserviX ROAS calculator. This instantly shows your return on ad spend and helps you benchmark against industry averages, giving you actionable insights to optimize your marketing strategy and maximize ROI.
Frequently Asked Questions
ROAS (Return on Ad Spend) measures how much revenue your advertising generates for every dollar spent. It's calculated by dividing total revenue by total ad spend.
ROAS helps you evaluate the effectiveness of your ad campaigns, identify high-performing channels, and make informed decisions about budget allocation.
A "good" ROAS depends on factors like profit margins, industry benchmarks, cost per click, and average order value. Many businesses aim for 4X ROAS, while the ecommerce average is around 2X.
Yes. The ObserviX ROAS calculator works for Google Ads, Facebook Ads, display campaigns, email marketing, and any digital ad channel.
Yes, it's completely free to use with no limits on the number of calculations.
You can improve ROAS by optimizing ad copy, refining audience targeting, testing different creatives, improving landing page conversion rates, and reallocating budget to top-performing campaigns.
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