How to calculate ROAS

What is ROAS?

ROAS Definition: Return On Advertising Spend, (ROAS), is a metric that measures the results of a digital advertising campaign. It returns the amount of revenue you get for every dollar spent into advertising.

Why you should calculate ROAS?

Having ROAS calculated you can evaluate how marketing & advertising are working and how you can improve future efforts for a higher return.

What is ROAS formula?

Return of Advertising Spend formula is simple:

ROAS = (revenue generated / advertising cost)

So if you have spent $5 on Facebook Ads and generated $100, it means you have a ROAS of 2000%

How to calculate ROAS?

Based on the formula above, we are able to calculate ROAS. First we need to get all the data we need, for the period we want to calculate.

There is our ROAS calculator you can use for this one.

  • How much money we’ve spent in our specific period (sum up all costs, with adwords, facebook ads and everywhere else you’ve spent money on advertising).
  • How much revenue was generated by all the money we’ve spent.

Having those 2 figures will allow us to calculate the Return of Advertising Spend.

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