Calculator
Example data
| Campaign | Ad Spend | Revenue | ROAS | Profit After Ads |
|---|---|---|---|---|
| Search - Brand | $1,200 | $7,200 | 6.000 | $2,910 |
| Social - Prospecting | $2,500 | $6,250 | 2.500 | $420 |
| Retargeting | $800 | $3,600 | 4.500 | $1,210 |
Formulas used
- ROAS = Revenue ÷ Ad Spend
- Net Revenue = Revenue × (1 − Refund Rate)
- COGS = Net Revenue × COGS%
- Fees = Net Revenue × Fees%
- Profit Before Ads = Net Revenue − COGS − Fees − Shipping − Overhead
- Profit After Ads = Profit Before Ads − Ad Spend
- Clicks = Impressions × CTR%
- Orders = Clicks × CVR%
- Revenue = Orders × AOV
- CPA = Ad Spend ÷ Orders
- CPC = Ad Spend ÷ Clicks
- CPM = (Ad Spend ÷ Impressions) × 1000
How to use this calculator
- Enter your Ad Spend for the time period.
- Select a Revenue Input Mode that matches your data.
- If modeling, provide AOV and your rates (CTR, CVR).
- Add assumptions for COGS, fees, and refunds.
- Click Calculate to see ROAS and profitability.
- Use Target ROAS to plan revenue or spend targets.
- Download CSV or PDF to share or archive results.
Attribution and input discipline
Accurate ROAS begins with consistent attribution. Use the same date range for spend and revenue, and confirm your attribution window, such as 7‑day click or 1‑day view. Track refunds separately, because a 5% refund rate can materially reduce net revenue. If you manage multiple channels, segment results by campaign type: brand search often yields higher ROAS than broad prospecting. This calculator lets you standardize assumptions across channels. Document tracking gaps before comparisons.
Modeling revenue from traffic signals
When revenue is not directly available, model it from traffic. Start with impressions, apply a realistic click‑through rate, then multiply clicks by conversion rate to estimate orders. Finally, orders times average order value produces modeled revenue. For example, 100,000 impressions at 1.5% CTR create 1,500 clicks; at 3% CVR that is 45 orders; with $80 AOV, revenue is $3,600. Use this view to stress‑test forecasts. Update rates weekly as audiences change materially.
Reading ROAS with margin and profit
ROAS alone does not guarantee profit. If your gross margin after fees is 40%, a ROAS of 2.5 leaves little room for overhead and shipping. Use the net revenue adjustments to reflect refunds, then subtract cost of goods sold, payment fees, and fixed costs to see profit after ads. Many teams set a target ROAS based on contribution margin: Target ROAS ≈ 1 ÷ contribution margin. The break‑even section computes it precisely.
Sensitivity testing for better forecasts
Planning improves when you test sensitivity. Increase CTR by 0.3 points, or CVR by 0.5 points, and observe how orders and CPA shift. If ROAS improves mainly from AOV increases, focus on bundles, upsells, and landing page clarity. If ROAS depends on lower fees, negotiate payment rates or adjust shipping thresholds. For paid social, small CVR changes often dominate outcomes. Record a best, base, and worst case set of inputs. for budgeting.
Reporting cadence and export-ready outputs
Operational reporting should be repeatable. Store inputs like spend, modeled clicks, AOV, and assumptions for COGS and fees. Then compare ROAS and profit after ads across weeks using the same metric definitions. Exporting results to CSV supports quick pivot tables, while the PDF format works well for stakeholder updates. Use the example table as a template for campaign naming and grouping. Consistent reporting also helps spot tracking breaks early. across active channels.
FAQs
ROAS compares revenue to ad spend only. ROI usually compares profit to total cost, including product costs and overhead. This calculator shows both ROAS and profit-after-ads for a clearer view.
Yes. When revenue reporting is delayed, model revenue from impressions, CTR, CVR, and AOV. Treat it as an estimate, update inputs with real performance weekly, and keep assumptions consistent across scenarios.
Refunds reduce net revenue and can inflate reported ROAS if ignored. Enter an estimated refund rate to see net revenue, adjusted costs, and profit after ads based on what you ultimately keep.
Set target ROAS from your contribution margin. If your margin after fees is 30%, a rough target is 1 ÷ 0.30 ≈ 3.33. Use break-even ROAS as the minimum, then add buffer for growth goals.
Differences often come from attribution windows, view-through credit, cross-device tracking, and offline conversions. Align time ranges, use the same conversion definition, and document your attribution settings before comparing reports.
Use CSV for analysis, filtering, and pivot tables. Use PDF for sharing a fixed snapshot with stakeholders. Both exports reflect the most recent calculation shown on the page.