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Return on Ad Spend calculator

Enter ad spend and attributed revenue to get Return on Ad Spend as a multiple and a percentage — then compare it to your break-even floor.

How Return on Ad Spend is calculated

Return on Ad Spend = attributed revenue ÷ ad spend. A Return on Ad Spend of 4.0× means you generated $4 in revenue for every $1 spent on ads. Platforms often show the same idea as a percentage (400%).

Return on Ad Spend ignores cost of goods. Pair it with Profit on Ad Spend or contribution margin so high-revenue campaigns do not hide thin-margin losses.

Return on Ad Spend = revenue ÷ ad spend
Return on Ad Spend % = (revenue ÷ ad spend) × 100
Break-even Return on Ad Spend depends on margin — use the break-even tool for floors.

When Return on Ad Spend misleads

Two campaigns at 5× Return on Ad Spend can have opposite profit outcomes if margins differ. Use Return on Ad Spend for auction diagnostics, then judge scale with Profit on Ad Spend and product-level profit uploads.

Frequently asked questions

What is Return on Ad Spend?

Return on Ad Spend measures revenue generated per dollar of ad spend. Formula: revenue ÷ ad spend. It is a revenue efficiency metric, not a profit metric.

How do you calculate Return on Ad Spend?

Divide attributed revenue by ad spend for the same window. Example: $20,000 revenue and $5,000 spend → Return on Ad Spend = 4.0× (or 400%).

What is a good Return on Ad Spend?

It depends on margin. At 25% margin, break-even Return on Ad Spend is 4×; many brands target higher. Always compare Return on Ad Spend to your break-even floor, not a generic industry number.