A ROAS between 3:1 and 4:1 (300% to 400%) is considered a healthy benchmark for most businesses, meaning you generate $3 to $4 in revenue for every $1 spent on ads.

How is ROAS calculated?

ROAS is calculated by dividing your total campaign revenue by your total ad spend, then multiplying by 100 to get a percentage.

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ROAS Calculator

Calculate your Return on Ad Spend (ROAS) to measure the efficacy of your digital marketing campaigns.

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Return on Ad Spend (ROAS)

Return on Ad Spend (ROAS) is a key performance indicator (KPI) that measures the amount of revenue your business earns for every dollar spent on advertising. The simple digital marketing metric gauges the success of a specific advertising campaign or strategy.

The ROAS Formula

ROAS = (Total Campaign Revenue / Total Ad Spend) × 100

Interpreting the Ratio

A ROAS of 4:1 (or 400%) means you generate $4 in revenue for every $1 spent on ads. For most businesses, a ROAS between 3:1 and 4:1 is considered a healthy benchmark, though this varies drastically based on your industry, profit margins, and specific marketing objectives.