ROAS & Ad Profit Calculator
Are your ads actually making money? Track your Return on Ad Spend and net profitability in seconds.
ROAS (Return on Ad Spend)
4.5x
Net ROI
80%
Net Profit
$2,000
ROAS vs ROI: What's the difference?
I genuinely believe that ROAS is a "vanity metric." A 10x ROAS looks amazing on a screenshot, but if your product costs 95% of your revenue, you're losing money. ROAS only looks at revenue. ROI looks at profit. You can't pay your rent with ROAS—you need profit.
What is a good ROAS? It depends on your margins. If you sell a digital course with zero fulfillment cost, a 2x ROAS is profitable. If you sell a physical product with thin margins, you might need a 4x or 5x ROAS just to break even.
The Math:
- ROAS: Revenue / Ad Spend.
- Net Profit: Revenue - Ad Spend - Other Costs.
- ROI: (Net Profit / Total Costs) * 100.