ROAS Calculator
At RootAMZ, we believe in equipping Vendors, Sellers & Manufacturers with powerful tools that provide actionable insights. Our easy to use calculators help you analyse performance metrics, optimise campaigns & make data driven decisions that drive real marketplace success.
Return on Ad Spend (ROAS)
Understand how effectively your advertising budget is generating revenue. Use our ROAS Calculator to:
- Measure the revenue earned for every dollar spent on ads
- Identify top-performing campaigns
- Refine your ad budget & bidding strategy
Formula Used: ROAS = Revenue ÷ Ad Spend
Whether you’re running campaigns on Amazon, Walmart, or other platforms, this tool helps you focus on profitability & scale your growth with confidence.
Understanding ROAS
ROAS is a key performance metric used to measure the effectiveness of your advertising efforts. ROAS measures the revenue generated for each dollar spent on advertising. A ROAS of 800% means that for every $1 spent, your business earns $8 in return.
ROAS
ROAS Formula:
The basic formula to calculate ROAS is:
ROAS (%) = (Total Ad Revenue ÷ Total Ad Spend) × 100
If direct revenue tracking isn’t possible, you can estimate ROAS using this alternative approach:
ROAS = (Conversions × Conversion Rate × Average Order Value) – Total Ad Spend
Calculating ROAS is straightforward. Follow these steps:
- Determine the total revenue generated from your ads (e.g., $100).
- Identify the total advertising cost (e.g., $25).
- Divide the revenue by the ad spend: $100 ÷ $25 = 4.
- To Changes a percentage, multiply by 100: 4 × 100 results in a 400% ROAS
What’s Considered a Good ROAS?
What constitutes a “good” ROAS can differ significantly based on your industry, the type of product, and the level of competition. While many advertisers aim for at least 400%, high-performing campaigns often exceed 800%. Ultimately, the higher the ROAS, the more effective your ad spend is.
RootAMZ ROAS Calculator
Return on Ad Spend measures how much revenue you generate for every dollar spent on advertising.
Your ROAS Results
Industry Benchmarks
ROAS vs. ACoS – What’s the Difference?
ROAS & ACoS (Advertising Cost of Sales) are two sides of the same metric:
- ROAS Changes the revenue generated for every $1 spent on advertising.
- ACoS reveals what portion of your total revenue is allocated to advertising expenses.
Using the same example:
- Ad Revenue = $100
- Ad Spend = $25
- ROAS = 400%
- ACoS = 25%
A high ROAS means you’re spending less to earn more. Conversely, a lower ACoS indicates higher efficiency in ad spending.
Want to calculate your campaign performance easily? Use our free ROAS & ACoS calculators to evaluate your advertising effectiveness on Amazon & other platforms.
If you want to understand more about ACoS (Advertising Cost of Sales), try our ACoS Calculator.
