ROAS Calculator

Determine your Return On Ad Spend to measure the effectiveness of your advertising campaigns.

Campaign Performance

How to Use This Tool

  1. Total Revenue from Ad Campaign: Enter the total sales value generated by a specific ad campaign.
  2. Total Ad Spend: Input the total amount you spent on that same campaign.
  3. Calculate: The tool will show your Return On Ad Spend as a ratio (e.g., 5:1) or a multiplier (5x).

Strategic Insights

ROAS: Your Advertising Compass

Return On Ad Spend (ROAS) is a critical metric for paid ads. It answers: "For every dollar I spend on ads, how many dollars in revenue do I get back?"

A "good" ROAS depends on your profit margins. A typical break-even ROAS for dropshipping is around 3x. This means for every $1 in ad spend, you make $3 in revenue. After a 33% product cost and 33% ad cost, you break even. A ROAS of 4x or higher is generally considered profitable.