ROAS Calculator
Return on Ad Spend (ROAS) is the primary efficiency metric for revenue-generating campaigns on Google Ads and Amazon. It tells you how many dollars of revenue you received for each dollar spent on advertising. A ROAS of 4x means $4 in revenue per $1 spent, which corresponds to an ACoS of 25%. Knowing your ROAS tells you whether a campaign is profitable relative to your margin — a 3x ROAS is excellent for a 40% margin product but unprofitable for a 20% margin one.
This tool has two modes. Calculate Actual ROAS takes your revenue and ad spend and returns the ROAS and ACoS. Calculate Max Spend works in reverse — enter a target ROAS and the revenue you want to generate, and the tool tells you the maximum you can spend on ads to hit that target. Use the second mode when setting campaign budgets or bid caps to back into a profitable spend level before launch. By DataBridge Advisory.
