# ROAS Calculator

This tool is part of Marketing Tools

## What does ROAS mean? What is ROAS

Return on Advertising Spend (ROAS) is the amount of revenue you get back for every dollar spent on advertising. It helps you determine effectiveness of online advertising campaigns. The higher your return is, the more effective is that advertising channel.

Any values that is below 100% indicated a negative return. So you spend more than you get back!

200%

### Examples of ROAS Calculator

• \$100 spent with \$2000 generated revenue
• \$50 spent with \$20000 generated revenue
• \$80 spent with \$4590 generated revenue
• \$1000 spent with \$865 generated revenue
• \$750 spent with \$750 generated revenue

### How to increase return of ad spent metric?

First of all, you need to start increasing your conversion rate and automate your marketing campaigns. If you didn't signup already, get a free account at MARA. Secondly, subscribe to our Marketing Automation Blog.

## The best ROAS calculator

The best roas calculator is pen and paper, or the one on this page. A return on advertising spend of 10:1 indicates that for every dollar spent on Advertising Campaigns, you get \$10 in revenue. Always thing about margins you have for the products/services you sell.

## What are good ROAS metrics

It depends on the business. Let's say you sell laptops with 5% margin. If you spend \$1000 on advertising with \$10.000 in generated revenue you will have a ROAS rate of 1000%. But you actually have 5% margin rate for your products, so you need to watch out.

## How to use ROAS calculator?

For using MARA ROAS calculator you will need the following:

• Revenue . How much money this advertisting campaigns generated for the same period.

Let's assume you want to calculate return of advertising (ROAS) for August.

If you use Google Analytics (or other tracking solution), select the period to be from 1st to 31th August. Then segment all traffic that came from specific source (your advertising campaigns). Go to Ecommerce section and get how much revenue this segment generated. Then for the Ad Spend value get all your invoices for August (or use adwords/facebook ads) reporting feature to tell you how much money were used for August. Enter that in second input.