Calculate your Return on Ad Spend instantly. Enter your ad spend and revenue to get your ROAS ratio, percentage, and profit.
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising. A ROAS of 4x means you earn $4 for every $1 spent on ads.
Example: If you spend $1,000 on ads and generate $4,000 in revenue, your ROAS is 4x (or 400%).
| Industry | Average ROAS | Status |
|---|---|---|
| E-commerce (General) | 4x | |
| Fashion & Apparel | 4.5x | |
| Electronics | 3.5x | |
| SaaS / Software | 5x | |
| Mobile Apps / Gaming | 2.5x | |
| Finance / Insurance | 6x | |
| Travel & Tourism | 3x | |
| Health & Beauty | 4x |
ROAS (Return on Ad Spend) is a marketing metric that measures the revenue generated for every dollar spent on advertising. For example, a ROAS of 4x means you earn $4 for every $1 spent on ads.
ROAS is calculated by dividing your total revenue by your total ad spend. The formula is: ROAS = Revenue / Ad Spend. For example, if you spend $1,000 on ads and generate $4,000 in revenue, your ROAS is 4x.
A good ROAS varies by industry, but generally, a ROAS of 4x or higher is considered good. E-commerce businesses typically aim for 4-5x ROAS, while SaaS companies may target 5x or higher.
ROAS measures revenue generated per dollar of ad spend, while ROI (Return on Investment) measures profit after accounting for all costs. ROAS = Revenue / Ad Spend, while ROI = (Revenue - Total Costs) / Total Costs.
Low ROAS can be caused by poor targeting, weak ad creatives, low-converting landing pages, competitive markets, or inefficient bidding strategies. Use A/B testing and audience optimization to improve.
AdBid uses AI to optimize your Meta, Google, and TikTok ads in real-time. Improve ROAS by 30% or more with automated optimization.
Start Free Trial →