ROAS Calculator

Do you want to know how much return each dollar spent on advertising brings? Our ROAS calculator allows you to quickly and easily calculate the return on ad spend, as well as additional financial metrics such as campaign profit and ROI comparison.

With this tool, you can analyze campaign performance, compare different marketing channels, and make informed business decisions that improve the profitability of your advertising efforts.

What is ROAS and why does it matter?

ROAS (Return on Ad Spend) is one of the most important marketing metrics, showing how much revenue each dollar spent on advertising generates. It allows you to quickly check whether your campaigns are delivering the expected return and how advertising investments impact your company’s financial results.

Regular monitoring of ROAS also helps identify effective activities, eliminate less efficient ones, and make strategic decisions regarding marketing budget allocation.

The formula for ROAS is simple: ROAS = (Revenue from Ads ÷ Ad Cost) × 100

A high ROAS means the campaign generates more revenue than the cost of advertising, while a low ROAS may indicate the need to optimize marketing activities. In practice, ROAS allows you to measure campaign efficiency regardless of type or channel, which is crucial for marketing strategy planning.

For example, if you spent 4,000 PLN on Facebook ads and generated 16,000 PLN in revenue, your ROAS would be 400% or 4:1 – meaning you earned 4 PLN for every 1 PLN invested in advertising.

How ROAS helps assess campaign effectiveness

ROAS allows you to easily compare the effectiveness of different campaigns and marketing channels. Analyzing this metric helps you:

• Determine which campaigns generate the highest revenue relative to spending.
• Identify underperforming campaigns and implement optimization measures.
• Monitor campaign performance in real time and quickly decide whether to increase or decrease the budget.
• Compare different marketing channels, e.g., Google Ads, Facebook Ads, or email campaigns, to focus on the most profitable activities.

Features of our ROAS calculator

Our ROAS calculator is an intuitive and comprehensive tool that gives you a complete picture of your advertising ROI in just a few seconds. It allows you not only to calculate the basic ROAS metric but also to understand the revenue needed to reach a target and how much profit the campaign actually generates.

Calculator features include:

• Advertising spend – enter the total amount spent on the campaign in PLN.
• Revenue from ads – provide the revenue generated by your marketing activities.
• Profit margin (optional) – enter the profit margin percentage to compare ROAS with ROI and better assess campaign profitability.
• ROAS result – the calculator instantly shows the return on ad spend in percentages.
• Required revenue – see how much revenue you need to generate to achieve a target ROAS.
• Campaign profit – the calculator calculates the actual profit generated by the campaign.
• ROI comparison – allows you to evaluate performance in terms of net profit and margin.
• Campaign performance rating – provides quick feedback on whether the campaign is profitable and if it’s worth increasing investment.

With these features, users get a complete picture of campaign profitability, enabling data-driven decisions rather than relying on intuition.

How to use the ROAS calculator step by step

Using the calculator is simple and does not require specialized knowledge. Just follow a few steps to get accurate results:

1. Enter advertising spend – input the total amount spent on the campaign.
2. Enter campaign revenue – provide the revenue generated by your ads.
3. Set profit margin (optional) – if you want to compare ROAS with ROI, enter the profit margin percentage.
4. Check ROAS, revenue, and profit – the calculator instantly displays all metrics in a clear format.
5. Analyze results and make decisions – evaluate campaign profitability, compare marketing channels, and plan future advertising investments.

What you can infer from ROAS calculator results

Analyzing the calculator results allows users to draw practical business conclusions and optimize marketing strategy. From the data, you can learn:

• How to optimize your advertising budget – see which campaigns deliver the highest return on investment and which require adjustment.
• How to improve campaign profitability – ROAS and ROI indicators help determine where to increase or decrease spending to maximize profit.
• Which marketing activities are most effective – the calculator makes it easy to compare different channels and campaigns in terms of efficiency.
• Making informed marketing decisions – a complete view of metrics allows you to act strategically and plan campaigns based on data rather than intuition.

ROAS benchmarks: what constitutes a good return on ad spend?

ROAS benchmarks vary depending on the advertising platform and industry, so it’s important to know the standards to assess your campaigns’ effectiveness.

For Google Ads:

• Excellent ROAS: 5:1 or 500% and above
• Good ROAS: 3:1 to 5:1 (300–500%)
• Average ROAS: 2:1 to 3:1 (200–300%)
• Poor ROAS: below 2:1 (200%)

For Facebook Ads:

• Excellent ROAS: 4:1 or 400% and above
• Good ROAS: 2:1 to 4:1 (200–400%)
• Retargeting campaigns: typically achieve 400–600% ROAS
• Cold traffic campaigns: typically 200–300% ROAS

E-commerce ROAS standards:

• Minimum profitable ROAS: 300% (3:1)
• Good ROAS range: 400–799% (4:1 to 8:1)
• Excellent ROAS: 800%+ (8:1 or more)

Note: ROAS below 100% means the campaign is losing money and requires optimization.

How to improve ROAS: proven strategies that work

Improving ROAS requires precise targeting, optimizing creative campaign elements, and smart budget management. Here are proven strategies to increase return on ad spend:

1. Optimize targeting precision
Focus on audiences most likely to convert. Use lookalike audiences based on your best customers and implement negative keywords to avoid irrelevant clicks. Retargeting campaigns reach users already interested in your offer, usually improving conversion rates. Targeting long-tail keywords reduces competition and costs while increasing the chance of reaching the right customer.

2. Improve creative ad performance
Regularly A/B test different headlines, images, and ad formats to find the most effective combinations. Create multiple landing pages optimized for specific audience segments and use compelling calls-to-action that drive conversions. Test video ads versus static images, as different formats may produce vastly different results.

3. Implement smart budget allocation strategies
Allocate budget based on performance. Shift funds to high-ROAS campaigns, use dayparting to display ads during peak performance hours, and increase bids on profitable keywords while reducing spending on underperforming ones. Diversifying advertising channels helps reduce risk and stabilizes campaign results.

Implementing these strategies allows you to systematically increase return on ad spend while improving overall marketing profitability and achieving better business outcomes.

ROAS vs ROI: understanding the key differences

Many marketers confuse ROAS with ROI, but these metrics measure different aspects of campaign performance and serve different purposes. Understanding the difference is crucial for making informed marketing and financial decisions.

ROAS (Return on Ad Spend)
ROAS focuses only on advertising costs and the revenue generated by those expenditures. It’s ideal for evaluating campaign effectiveness and making decisions about marketing budget allocation, showing how much revenue each dollar spent on advertising generates.

ROI (Return on Investment)
ROI accounts for all business costs, including production, delivery, salaries, and other operational expenses. It provides a more comprehensive view of a company’s or project’s overall profitability.

Comparison example:

• Advertising spend: 4,000 PLN
• Revenue from ads: 20,000 PLN
• Additional business costs: 10,000 PLN

In this case, ROAS is 500%, meaning each PLN spent on ads generated five times the revenue. ROI is approximately 43%, considering all business costs, showing the true profitability of the entire endeavor.

Thus, ROAS is best for evaluating the efficiency of individual ad campaigns, while ROI gives a full picture of the profitability of a company or project.