Ad ROAS Calculator
Return on ad spend.
business
Adjust the inputs below
ROAS, return on ad spend, is the revenue an advertising campaign brings in for every rupee spent on it. The calculator takes the revenue the ads produced and the amount spent, and returns ROAS as a multiplier, as a percentage and as the gross amount left after the ad bill.
The formula
ROAS = revenue from ads ÷ ad spend
A ROAS of 4 means ₹4 of revenue for each ₹1 of advertising; as a percentage that is 400%. The gross figure the calculator shows is simply revenue minus ad spend, which is what the campaign brought in before the cost of the product itself.
A worked example
A Meta campaign for a D2C skincare brand spent ₹80,000 in a month and the orders attributed to it came to ₹3,20,000.
| Item | Figure |
|---|---|
| Revenue from ads | ₹3,20,000 |
| Ad spend | ₹80,000 |
| ROAS | 3,20,000 ÷ 80,000 = 4.0× (400%) |
| Revenue after ad cost | ₹2,40,000 |
Why a 4× ROAS can still lose money
ROAS looks only at ad spend. The product costs money too. If the skincare brand's gross margin is 55%, the ₹3,20,000 of revenue carries ₹1,76,000 of margin, and after the ₹80,000 ad bill ₹96,000 is left. Now add returns, payment-gateway fees and packaging, and the true profit is lower again.
The number to know is your break-even ROAS, which is 1 ÷ gross margin. At a 55% margin that is 1.82: any campaign below 1.82× loses money on every order even though it "returns" more than it spent. At a 30% margin it is 3.33×. Use the profit margin calculator to find your margin first, then judge campaigns against the break-even ROAS rather than against zero.
ROAS versus ROI
ROI is profit divided by spend; ROAS is revenue divided by spend. A campaign with a 4× ROAS and a 55% margin has an ROI of (1,76,000 − 80,000) ÷ 80,000 = 120%. Agencies report ROAS because it is larger and easier to attribute; finance teams prefer ROI because it is the number that reaches the bank account. The ROI calculator does that calculation.
Attribution caveats
Ad platforms count a sale as theirs if the buyer saw or clicked an ad within an attribution window, often 7 days after a click and 1 day after a view. Some of those customers would have bought anyway. Many brands compare platform ROAS with the overall ratio of total revenue to total ad spend across all channels, often called blended ROAS or MER, to see how much of the platform's claim is real.
Ad ROAS Calculator — frequently asked questions
How is ROAS calculated?
Revenue attributed to the ads divided by the ad spend. ₹3,20,000 of revenue from ₹80,000 of spend is a ROAS of 4, or 400%.
What is a good ROAS?
Above your break-even ROAS, which is 1 divided by your gross margin. A 50% margin business needs at least 2×; many e-commerce brands target 3× to 5× to leave room for returns and overheads.
What is the difference between ROAS and ROI?
ROAS compares revenue to ad spend; ROI compares profit to ad spend. ROAS is always the larger number because it ignores the cost of the product.
Should I include GST in the revenue figure?
Use revenue net of GST. The tax is passed to the government and overstates what the campaign earned.
Why does my platform ROAS look better than my overall numbers?
Platforms claim any sale inside their attribution window, including customers who would have bought anyway. Comparing total revenue to total ad spend across channels gives the blended figure.
Embed this calculator
Free to use on your own site — no signup, no key, no limits. Paste this where you want the calculator to appear. Please keep the attribution line; it is the only thing we ask in return.
Add ?theme=light to the embed URL for a light background. The frame reports its own height to the parent window as a asc-embed-height message if you would rather size it automatically than use the fixed 620px.
Related calculators
ROI Calculator
Compute Return on Investment as a percentage from initial cost and gain — for marketing campaigns, real estate, or any business project.
Break-Even Calculator
Units to sell to cover costs.
Profit Margin
Gross and net profit margins.
Markup Calculator
Selling price from cost and markup.