Here’s a FREE ROAS Calculator for you to know your metrics instantly
🔍 How to Calculate ROAS with Real Costs
ROAS is often miscalculated. Marketers usually just take total ad revenue and divide it by ad spend.
But what about:
- Shipping
- Credit Card Fees
- Refund Rate
- Cost of Goods Sold (COGS)
- Platform commissions
To get real ROAS, your spend calculator must include:
- Ad Spend
- Cost
- Selling Price
- Total Cost (COGS + Fees)
- Revenue from conversions
🧠 Our ad spend ROAS calculator automates all of this for you!
If you’ve ever run an ad and wondered, “Was that even worth the money I spent?”—you’re not alone.
I’m Sorav Jain, founder of Digital Scholar and echoVME, and over the last 15 years, I’ve worked with 300+ brands, spent crores on digital campaigns, and trained 300,000+ marketers across the globe.
One of the biggest mistakes I see marketers make?
They obsess over clicks, CTRs, CPCs… but forget the most important number in the entire funnel:
ROAS – Return on Ad Spend.
It’s not just a metric—it’s your compass. It tells you whether your ads are profitable or just popular.
After reviewing thousands of campaigns from Meta Ads, Google Ads, YouTube, and TikTok, I realized one thing:
👉 The marketers and business owners who know how to calculate ROAS (and use it to make decisions) are the ones who grow the fastest.
So, I built this Free ROAS Calculator to make it easy for anyone—freelancer, founder, media buyer, or intern—to finally take control of their ad spend.
Whether you’re running TikTok Ads or managing B2B campaigns, this tool will help you:
- Understand profitability
- Set better ad budgets
- Optimize faster
This guide will walk you through everything—step by step, just like I teach it inside Digital Scholar.
So let’s dive in 👇
In this definitive guide, you’ll learn:
- ✅ What ROAS is and how to calculate it using our free ROAS calculator
- ✅ Why ROAS matters more than CTR or CPC in 2025
- ✅ The ROAS formula marketers actually use
- ✅ How to measure total ad revenue accurately
- ✅ How to improve your profit margin and campaign performance
- ✅ How to use ROAS in budget allocation and ad spend decisions
Let’s dive in.
📊 What is ROAS (Return on Ad Spend)?
ROAS stands for Return on Ad Spend, and it’s one of the most metrics to calculate the profitability of a given brand. There’s two types of ROAS: Dashboard ROAS and the Overall ROAS.
ROAS Formula:
ROAS = Total Revenue / Total Ad Spend
For example, if you spent ₹20,000 and made ₹80,000 in total revenue,
your ROAS = 80,000 / 20,000 = 4x ROAS
That means:
For every ₹1 you spend on ads, you get ₹4 back.
CTR and CPC used to be the go-to metrics in digital marketing. But as ad spending has increased and competition has exploded, we need metrics that focus on actual revenue and profitability.
Here’s why ROAS is superior:
| Metric | Focus | Problem |
|---|---|---|
| CTR | Clicks | Doesn’t show sales |
| CPC | Cost-per-click | May be cheap, no profit |
| ROAS | Revenue / Spend | Shows true returns ✅ |
📌 Use ROAS to make informed decisions about your ad creatives, budget allocation, and campaign performance.
🎯 ROAS Benchmark by Channel (2025)
Here are the latest ROAS benchmarks marketers are reporting in India:
| Platform | ROAS Benchmark |
|---|---|
| Google Ads | 3.5x – 6x |
| Meta Ads (FB + IG) | 2.8x – 4.5x |
| TikTok Ads | 2.5x – 4x |
| Email Marketing | 5x – 8x |
| B2B Campaigns | 6x – 10x |
💡 For B2B marketers, the ROAS metric is also used to calculate long-term value from lead conversions and nurture funnels.
💡 How to Improve ROAS: Actionable Tips
If you’re getting below a 2x ROAS, you’re likely losing money.
Here’s how to push for higher ROAS:
- Improve Conversion Rate
- Use better ad creatives
- Optimize your landing pages
- Reduce friction in checkout
- Increase Average Order Value
- Add upsells, bundles, and one-click add-ons
- Reduce Costs
- Lower shipping fees or switch fulfillment partners
- Use AI for Ad Optimization
- Tools like Pika Labs, ChatGPT, and Jasper can help auto-generate variations to improve ad performance
- Run Retargeting Campaigns
- Lower CPC and raise ROAS with custom audiences
📊 ROAS Calculator: Example Breakdown
Let’s say you run an ecommerce brand selling T-shirts.
| Metric | Value |
|---|---|
| Average Order Value | ₹1,000 |
| Cost of Goods | ₹350 |
| Payment Gateway Fees | ₹50 |
| Total Ad Spend | ₹10,000 |
| Total Revenue (from ads) | ₹40,000 |
➤ ROAS = ₹40,000 / ₹10,000 = 4x ROAS
→ Profit Margin = (Revenue – Total Cost) / Revenue
→ Profit = ₹40,000 – ₹14,000 = ₹26,000 Net Profit
🧾 Why This ROAS Calculator Is Better Than Google Sheets
Most businesses use spreadsheets or a basic cpc calculator, but they don’t:
- Visualize ROAS break-even points
- Calculate total cost of ads + logistics
- Include real-time insights for each ad source
- Handle multi-channel input (Google Ads + Meta + TikTok Ads)
That’s why we built this ad spend calculator:
✔️ Mobile Friendly
✔️ Real-time inputs
✔️ Export data
✔️ Built with marketers in mind
📚 Who Can Use This ROAS Calculator?
- Digital marketers managing client ad budgets
- Ecommerce businesses scaling D2C
- Affiliate marketers testing multiple ad sets
- Agencies optimizing sales conversion
- Startup founders evaluating campaign ROI
- Growth hackers improving landing page ROAS
🧠 Even marketing students at Digital Scholar are trained to calculate ROAS using this tool from Day 1.
🧠 FAQs About ROAS Calculation
1. What is ROAS?
ROAS (Return on Ad Spend) is a marketing metric that measures how much revenue you make for every rupee spent on ads.
2. How do I calculate ROAS?
Use the formula:
ROAS = Total Ad Revenue / Ad Spend
Or simply enter your values into our ROAS calculator above!
3. What is a good ROAS?
A 3x ROAS is usually good. But this depends on your business. For high-margin products, even 2x works. For low-margin or B2B, aim for 6x+.
4. Why is ROAS better than CPC?
CPC shows cost per click, but not whether that click turned into revenue. ROAS reveals profitability from actual purchases.
5. Can I use this for Google and Meta ads?
Yes! Our tool supports multi-channel inputs—great for marketers managing Google Ads, Facebook, Instagram, and even TikTok Ads.
6. How do I improve my ROAS?
Improve your conversion rate, refine targeting, test better ad creatives, and automate campaigns using tools like Motion, Jasper, or Zapier.
7. Is this calculator free?
Absolutely. This is a free ROAS calculator built by Digital Scholar’s growth team for public use.
8. Can students or interns use this tool?
Yes! In fact, Digital Scholar students use this during internships to track live ad campaigns and optimize budget allocation in real time.
9. Can this be used for B2B?
100%. Just enter your deal size as revenue and ad spend accordingly. You’ll get your ROAS benchmark instantly.
10. How accurate is this?
The calculator uses formulas approved by ad strategists at echoVME, one of India’s top performance marketing agencies.
🎓 Want to Master ROAS, Not Just Measure It?
Enroll in India’s leading digital marketing course at Digital Scholar and learn:
✅ How to calculate and improve ROAS
✅ How to build a career as a digital marketing specialist
✅ How to write profit-first campaigns that convert
✅ How to scale paid ads on Meta, Google & TikTok
✅ Hands-on projects, agency simulations & more
🎯 Join 300,000+ marketers and start generating higher ROAS in your career.
🏁 Final Word
If you’re not tracking ROAS, you’re burning your ad budget in the dark.
With tools like this ROAS Calculator, you’ll not only track—but dominate your paid ad game.
So go ahead:
🔗 Bookmark this page
📊 Embed it in your reporting
📈 Start making informed decisions that lead to profit
And if you’re serious about next-level campaigns, join Digital Scholar’s AI-powered training and work with real clients at echoVME.
