GrowingAlgo Ad Tools · Measure
ROAS Calculator
ROAS is return on ad spend: ad revenue divided by media cost. 4.0x means ₹4 came back for ₹1 of ads. It is the weekly scale number. It is not ROI. ROI subtracts more than media.
The tool
Try it here
Use this after there is attributed revenue and a media cost for the same window. Not as a guess before UTMs (tags on a link) exist.
Why it helps
Why you need a ROAS Calculator
Revenue must be the same attribution you will live with (GA4 last click, Ads platform, or a model you wrote down). Mixing Google Ads “conv. value” with a CRM number without a note is how 4x becomes 1.8x in a board deck.
Media cost is the platform spend for that campaign, not payroll, not tools. Those belong in ROI.
Break-even ROAS depends on margin. At 40% contribution margin you need 2.5x just to cover COGS. A 2.0x “win” can still lose money.
When
When to use it
- The review date in the campaign plan - often day 7 or day 14, not hour 6.
- Before you raise budget. If ROAS is below break-even, more spend is a bigger hole.
- When someone says “ROAS is fine” and cannot say the two numbers they used.
How
How to use it
- 1Enter attributed revenue and media spend for the same dates and the same campaign name.
- 2Optional: contribution margin % (revenue minus COGS, before ads). The calculator shows break-even ROAS and estimated ad profit.
- 3Read 4.0x as a scale candidate only if it is above break-even and people are not leaving the landing page right away.
- 4If revenue is empty because UTMs were messy, fix tagging. Do not invent a ROAS from blended site sales.
Example
Example: demo campaign, week one
google-in-demo-exact-2026q3. Window 7 days. Revenue from demo bookings valued at ₹8,000 each in the sheet - write that rule down.
You put in
- Revenue
- ₹2,00,000 (25 bookings × ₹8,000)
- Spend
- ₹50,000
- Margin
- 40%
You get
ROAS = 200000 / 50000 = 4.00x Break-even ROAS = 1 / 0.40 = 2.50x Ad profit ≈ 200000 × 0.40 − 50000 = ₹30,000
4.00x is above 2.50x, so media is not sinking contribution. That does not mean “triple the budget tomorrow.” Check CPA vs sales capacity and whether the page matches the ad first. ROI would still subtract people and tools.
Result
What this changes for you
Scale, pause, or fix the page with one definition. Agencies and in-house stop arguing “good ROAS” because the formula is on the page.
Common mistakes
- Using platform ROAS from Google and Meta in one cell. Different attribution windows. Label the source.
- Calling ROAS “ROI.” ROI is return after full cost. There is a note on this site for that.
- Target ROAS bidding with no conversion value set. The algorithm has nothing real to aim at.
- Comparing week 1 branded search ROAS to week 1 cold prospect ROAS as if they were the same job.
FAQ
ROAS Calculator FAQ
How do you calculate ROAS?
ROAS = attributed ad revenue ÷ media cost. 2,00,000 / 50,000 = 4. If either number is from a different date range, the ratio is wrong.
What is a good ROAS?
Above your break-even ROAS, which is 1 ÷ contribution margin. At 40% margin, 2.5x is break-even. “4x is good” is a slogan unless you know margin.
Is ROAS the same as ROI?
No. ROAS only uses media cost. ROI uses a fuller cost. Use ROAS to scale a campaign. Use ROI to keep the channel.
Should I include tax or shipping in ROAS revenue?
Use the same revenue definition every week. If the shop reports ex-tax, do not mix in-tax from Ads. Write the rule in the planner.