ROAS Calculator
Digital advertising is a powerful way to grow your business, whether you're targeting new audiences or reconnecting with existing customers. A key part of success is testing different approaches to discover the campaigns that perform best and can be scaled effectively.
Ultimately, the most important question is whether your ad spend is delivering a positive return. Below, you’ll find both a simple ROAS calculator for quick insights and a full calculator for a more detailed analysis.
Measure your advertising performance with our ROAS calculator
- Instant clarity on whether your ads are profitable
- Clear understanding of which campaign to scale or not
- Confidence in your marketing spend
- Deeper insights with our full calculator
Free ROAS Calculator
How to calculate ROAS
Understanding your Return on Ad Spend (ROAS) is essential for measuring whether your advertising is profitable. Our ROAS calculator works by dividing the revenue generated from your ads by the amount you spent on them.
If your ROAS is above 1, you’re generating more revenue than you’re spending, which is always a positive sign. This metric gives you a clear view of how effectively your campaigns are performing and helps guide future decisions.
In simple terms, ROAS shows how much revenue you earn for every pound spent on advertising, allowing you to make more informed and confident marketing choices.
What is considered a good ROAS in ecommerce?
A “good” ROAS in ecommerce depends on your profit margins and business goals, but a common benchmark is around 3:1 meaning you earn £3 for every £1 spent on ads.
However, this can vary. If your margins are high, you might still be profitable with a lower ROAS. If your margins are tighter, you may need a higher ROAS (like 4:1 or more) to make a profit.
It also depends on your strategy. For example, you might accept a lower ROAS when gaining new customers, knowing they’ll bring more value over time. In short, a good ROAS is one that keeps your business profitable while supporting your growth.
How to improve ROAS
Improving ROAS comes down to making each pound you spend work harder.
One way to do this is by increasing the value of each sale, which could be through higher prices, bundles, or encouraging customers to spend more per order.
You can also improve ROAS by bringing people back, using retargeting on past visitors or customers, which often leads to better returns than constantly chasing new audiences.
And lastly, it's also worth tightening up your offers, including strong discounts, clear messaging, or added value, which can make your ads more effective without increasing spend.
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