HOW TO CALCULATE ROAS
ROAS (Return On Ad Spend) measures how much revenue you earn for every dollar spent on advertising. The formula is simple:
ROAS = Revenue ÷ Ad Spend
A ROAS of 4:1 means you earn $4 for every $1 spent. Most businesses consider 4:1 or higher as excellent, 2:1-4:1 as good, and anything below 1:1 means you're losing money on ads.
WHAT IS A GOOD ROAS?
FREQUENTLY ASKED QUESTIONS
What's the difference between ROAS and ROI?
ROAS measures return specifically from ad spend. ROI (Return On Investment) measures return from your total investment including staff, tools, and overhead — not just ad spend.
Should I use ROAS or CPA to measure performance?
Use both. ROAS tells you revenue efficiency. CPA (Cost Per Acquisition) tells you how much each customer costs. Together they give you a complete picture of ad performance.
Why is my ROAS different in Google Ads vs. Analytics?
Attribution models differ. Google Ads uses last-click by default and may count conversions within its attribution window. Google Analytics uses different models and may attribute the same conversion differently.
Does this calculator account for profit margins?
No — ROAS measures revenue, not profit. To understand actual profitability, subtract your cost of goods, fulfillment, and overhead from the revenue figure before calculating.
WANT A HIGHER ROAS?
We manage Google Ads and Meta campaigns for brands across Dubai with average ROAS above 10:1.
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