What is ROAS?
Return On Ad Spend: the revenue earned for each dollar spent on advertising. A ROAS of 4 means every 1 spent brings back 4 in revenue.
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Marketing Spend Impact Calculator
See how changing marketing spend moves revenue at a given return on ad spend (ROAS), and the net gain after the extra spend.
revenue = spend × ROAS ; Δrevenue = Δspend × ROAS
Frequently asked questions
Does a high ROAS mean I am profitable?
Not by itself. ROAS is revenue-based, so you must still cover the product cost. The net gain figure here (extra revenue minus extra spend) is closer to the profit story.
Why show net gain?
Because spending more always raises revenue if ROAS is positive, but what matters is whether the extra revenue beats the extra spend. Net gain answers that directly.
Is ROAS constant as I spend more?
Often not. Early spend hits your best prospects; later spend reaches cooler audiences, so real ROAS usually falls as budgets grow. Try a lower ROAS for the extra spend to be realistic.
How is this different from ROI?
ROI compares profit to total cost; ROAS compares revenue to ad cost specifically. ROAS is the marketer's quick gauge, ROI the accountant's fuller one.