ROAS: $5,000 Ad Revenue From $1,000 Ad Spend
Generating $5,000 in revenue from $1,000 in ad spend gives a 5x ROAS — generally considered a strong return for most ad channels.
How to use this tool
- Enter revenue attributed to ads, total ad spend and gross margin in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your roas and the full breakdown beneath it.
A 5x ROAS means you earn $5 for every $1 spent on ads — this calculator also shows margin-adjusted ROAS to reveal the true profitability of your campaigns.
Frequently asked questions
- What is a good ROAS?
- A common benchmark is 4:1 ($4 revenue per $1 spent), but the required ROAS depends on your gross margin. At 25% margin you need ROAS ≥ 4x to break even; at 50% margin you need ROAS ≥ 2x.
- What is the difference between ROAS and ROI?
- ROAS = revenue / ad spend (gross ratio). ROI = (revenue - cost) / cost × 100% (net return). ROAS ignores the cost of goods, while ROI accounts for it. Use ROAS to optimise campaigns; use ROI to assess true profitability.