Ecommerce ROAS Calculator
Divide store revenue by ad spend to get ROAS, and compare it against your margin break-even.
About Ecommerce ROAS Calculator
The ratio divides one figure by the other and is read against a conventional benchmark of 4. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number. A advertising return compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
Formula
Ecommerce ROAS
Return on Ad Spend = Revenue attributed to ads ÷ Ad spend
- Revenue attributed to ads
- Numerator of the ratio
- Ad spend
- Denominator of the ratio
Worked example
With the default values below, Ecommerce ROAS Calculator returns Return on Ad Spend of 4.000. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Revenue attributed to adsminimum 0
- 320,000
- Ad spendminimum 0
- 80,000
Results
- Return on Ad Spend
- 4.000
- Expressed as a Percentage
- 400.00%
- Surplus Over the Benchmark
- 0.000
- Inverse Ratio
- 0.250
- Interpretation
- Adequate — at or above the benchmark of 4
Step by step
- 1Values used
- 2Ecommerce ROAS
- 3Return on Ad Spend= 4.000
- 4Expressed as a Percentage= 400.00
- 5Surplus Over the Benchmark= 0.000
- 6Inverse Ratio= 0.250
- 7Interpretation= Adequate — at or above the benchmark of 4
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Ecommerce ROAS calculated?
Return on Ad Spend = Revenue attributed to ads ÷ Ad spend The ratio divides one figure by the other and is read against a conventional benchmark of 4. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number.
Why does Ecommerce ROAS matter?
A advertising return compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
What values do I need to enter?
This calculator takes 2 inputs: Revenue attributed to ads, Ad spend. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.