Return on Ad Spend (ROAS)
Revenue generated for every dollar spent on advertising
FORMULA
ROAS = Revenue Attributed to Ads / Total Ad Spend
Alternate Calculations
By Campaign
Campaign Revenue / Campaign Ad SpendWhat is Return on Ad Spend?
Return on Ad Spend (ROAS) measures the revenue generated for each dollar of advertising spend. It's calculated by dividing revenue attributed to ads by total ad spend. A ROAS of 3:1 or higher is generally considered profitable for e-commerce. Essential for evaluating campaign profitability.
Chart
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Sample Data
| day | spend | revenue | roas |
|---|---|---|---|
| Jan 1 | 1,000 | 4,500 | 4.5 |
| Jan 2 | 1,100 | 4,950 | 4.5 |
| Jan 3 | 950 | 3,990 | 4.2 |
| Jan 4 | 1,200 | 5,400 | 4.5 |
Required Data Columns
Total Ad SpendAttributed Revenue