ROAS Calculator (Return on Ad Spend)
Calculate your Return on Ad Spend (ROAS) to measure the effectiveness of your advertising campaigns. Know exactly how much revenue each dollar of ad spend generates.
Fill in the fields above and click Calculate to see your results.
How to use
To successfully use the ROAS Calculator (Return on Ad Spend), you must gather specific advertising metrics related to your marketing campaigns. Begin by carefully entering your 'Revenue from Ads', 'Total Ad Spend', and 'Product Gross Margin' into the correct fields.
Make sure to double-check your advertising platforms (like Facebook or Google Ads) and financial records to get the most accurate numbers. Once you input the data, the calculator will immediately process these figures using standard e-commerce formulas.
You will be able to see key metrics such as your ROAS, Break-Even ROAS, and actual Ad Campaign Profit. By analyzing these outputs, you can determine if your current campaigns are truly profitable after accounting for product costs, and make informed decisions on scaling or pausing ads.
How it's calculated
ROAS
Revenue generated per unit of ad spend (e.g., 5x means $5 revenue per $1 spent)
Break-Even ROAS
Minimum ROAS needed to cover product costs
Ad Campaign Profit
Profit after product costs and ad spend
Ad Spend Ratio (MER)
Ad spend as a percentage of revenue
Examples
Facebook Ads campaign for e-commerce
- Total Ad Spend:10,000,000
- Revenue from Ads:50,000,000
- Product Gross Margin:40
Result
- Ad Spend Ratio (MER):20.0%
- ROAS:5
- Ad Campaign Profit:10,000,000
- Break-Even ROAS:2.5
If you spend 10 million VND on Facebook ads and generate 50 million VND in sales, your ROAS is 5x. With a 40% product margin, your break-even ROAS is 2.5x. Since your actual ROAS (5x) is higher than break-even, the campaign generated a healthy net profit of 10 million VND.
Low margin product campaign
- Total Ad Spend:20,000,000
- Revenue from Ads:40,000,000
- Product Gross Margin:30
Result
- Ad Spend Ratio (MER):50.0%
- ROAS:2
- Ad Campaign Profit:-8,000,000
- Break-Even ROAS:3.33
Spending 20 million VND to generate 40 million VND in revenue gives a 2x ROAS. However, because the product gross margin is only 30%, the break-even ROAS needed is 3.33x. This campaign is actually losing money, resulting in a net loss of 8 million VND despite the revenue.
Industry Benchmarks
| Metric | Typical Range |
|---|---|
| Average industry standard for Vietnamese SMBs. | 25 % |
Data source: GSO Vietnam 2024
Frequently Asked Questions
What is a good ROAS?
What is the difference between ROAS and ROI?
What happens if I enter incorrect numbers into this calculator?
How often should I use this calculator for my business?
CalcVault Editorial Team
Verified Content Team
The CalcVault Editorial Team is a group of finance, health, and mathematics specialists dedicated to producing accurate, bilingual calculator content for Vietnamese and global small business owners. Every formula on CalcVault undergoes rigorous source verification against authoritative bodies including the IRS, CFPB, CDC, WHO, and NIST before publication. Our process includes independent peer review, structured fact-checking, and scheduled content audits to ensure every calculator remains up-to-date with the latest regulatory and scientific standards. We are committed to editorial independence from our advertising partners.
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