iWebSeoTool ROAS Calculator: The iWebSeoTool roas calculator works out your return on ad spend from the money you put into ads and the revenue those ads brought back.
Enter any two of the three figures — ad spend, revenue and ROAS — and the third is worked out for you, along with the gross profit on the campaign. It runs entirely in your browser, and nothing you type is stored.
What you spent on the ads in the period.
Sales revenue tracked back to those ads.
Revenue per 1 unit of spend. Enter any two fields — the third is worked out.
ROAS = Revenue ÷ Ad spend. It measures sales efficiency only — product costs, fees and overheads are not included, so compare it with your break-even ROAS (1 ÷ gross margin) before judging a campaign. Everything is calculated in your browser; nothing is stored.
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How this return on ad spend calculator works
ROAS (return on ad spend) compares the revenue an ad campaign generated with what the campaign cost. Because the three figures are linked by one formula, this calculator can solve for whichever one you are missing: type your spend and revenue to measure a finished campaign, or type your spend and a target ratio to see the revenue the campaign needs to reach.
The ROAS formula
ROAS = Revenue from ads ÷ Ad spend. A campaign that cost $1,000 and produced $4,000 in tracked sales has a ROAS of 4, which is also written as 400%. If you know your gross profit margin, your break-even ROAS is 1 ÷ margin — at a 40% margin that is 2.5, and anything below it means the ads are not covering their cost from gross profit.
ROAS vs ROI
ROAS looks only at revenue against ad spend, so it says nothing about product costs, platform fees or overheads. ROI takes the wider view and compares profit with the full cost of the activity. Marketers usually watch ROAS day to day because it is fast to calculate, then check ROI before deciding whether a campaign truly made money. For the profit-based view of organic search, try our SEO ROI Calculator.
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Frequently asked questions
ROAS stands for return on ad spend. It tells you how much revenue your ads bring back for every unit of currency you spend on them. A ROAS of 4 means each 1 unit of ad spend produced 4 units of revenue.
ROAS = Revenue from ads divided by Ad spend. If you spent 500 on ads and the sales tracked to those ads totalled 2,000, your ROAS is 2000 / 500 = 4, which is also written as 400%. This calculator works the formula forwards and backwards: enter any two of ad spend, revenue and ROAS, and it works out the third.
There is no single good ROAS for every business, because it depends on your profit margins and costs. A ROAS that looks high can still lose money if your margins are thin, and a modest ROAS can be profitable when margins are wide. Compare your ROAS with your break-even ROAS rather than with a universal benchmark.
Break-even ROAS = 1 divided by your gross profit margin (as a decimal). At a 40% margin, break-even ROAS is 1 / 0.40 = 2.5. Below that level the ads are not covering their cost from gross profit; above it, they are contributing profit before other overheads.
ROAS compares revenue with ad spend only. ROI (return on investment) compares profit with the full cost of the activity, which can include product costs, fees and overheads. ROAS answers "how efficiently do ads turn spend into sales?", while ROI answers "how much profit did we make for the money invested?". Our SEO ROI Calculator covers the profit-based view for organic search.
Yes. A ROAS below 1 means the tracked revenue is smaller than the ad spend — for example, ROAS 0.8 means 0.8 units of revenue for every 1 unit spent. Unless there is a deliberate reason, such as a loss-leading launch offer, that usually signals the campaign needs attention.
Yes. The iWebSeoTool ROAS Calculator on iwebseotool.com is free, with no sign-up. Your figures are calculated in your browser and are not stored.