ROAS Calculator
Calculate your Return on Ad Spend, benchmark it against your industry, and understand what it takes to improve it.
What is ROAS?
Return on Ad Spend (ROAS) measures how much revenue your advertising generates compared to how much you spend.
For example, if you spend $10,000 on ads and generate $40,000 in revenue, your ROAS is 4x.
This means every $1 spent on advertising produces $4 in revenue.
What industry are you in?
Pick the industry that best matches your business to benchmark your results against real-world averages.?
Total Ad Spend
Enter the total amount spent on advertising during the selected period.
Attributed Revenue
Add the total revenue generated from your ads during the same period.
Your Results
Updates instantly as you enter data
Revenue per $1 of total ad investment
Ad spend + any agency fees
Revenue minus total investment
Industry Benchmark — E-Commerce
Enter your data to see a personalised insight.
Source: WordStream Industry Benchmarks 2024 · eMarketer Cross-Industry ROAS Report 2024 · Nielsen Ad Intel 2024.
How to use this tool
Select your industry benchmark
Pick the industry that best matches your business to see how your ROAS stacks up against typical ranges.
Enter your ad spend
Input the total amount spent on advertising during the selected period.
Add agency fees (optional)
If you work with a media buying agency, choose between a percentage of spend or a flat monthly retainer — the tool will factor it into your true ROAS.
Enter your revenue
Add the total revenue generated from your ads during the same period.
Review your results
Your ROAS and performance rating update instantly as you enter data.
Know Your True Return On Ad Spend
Track every lead from your ads and shows which campaigns convert into real sales, so you always know where your marketing budget is paying off.
Factors Affecting ROAS
Ads-to-Lead Conversion Rate
Your conversion rate determines how many visitors from your ads turn into customers. Higher conversion rates mean more leads from the same ad spend.
Ways to improve it
- Better landing pages
- Clearer value propositions
- Faster page load speed
- Stronger call-to-action
Cost Per Click / Cost Per Mile (CPC/CPM)
The cost of acquiring traffic directly affects ROAS. Higher ad costs require stronger conversion rates or higher order values to maintain profitability.
Influenced By
- Ad competition
- Targeting
- Creative quality (copy / design / video)
- Ad relevance score
Lead-to-Customer Conversion Rate
Not every lead becomes a paying customer. If your sales team converts more leads into deals, the revenue from the same number of leads increases significantly.
Average Deal Value
Businesses with higher average deal sizes generate stronger ROAS even if their cost per lead is relatively high.
| Metric | Business A | Business B |
|---|---|---|
| Ad Spend | $5,000 | $5,000 |
| Cost Per Lead | $50 | $50 |
| Leads Generated | 100 | 100 |
| Lead-to-Customer Conversion | 10% | 10% |
| Average Deal Value | $500 | $5,000 |
| Revenue Generated | $5,000 | $50,000 |
| ROAS | 1x | 10x |
Customer Lifetime Value (CLV)
The total projected revenue earned from a customer over their entire relationship. Knowing your CLV lets you invest more in acquiring high-value, long-term clients while reducing wasteful spending on low-value leads.
Lead Management & Sales Follow-Up
The speed and quality of follow-up significantly affects ROAS for lead-generation businesses. Leads contacted quickly convert at much higher rates.
Systems like Leaf CRM help businesses capture leads from ads, assign them to a salesperson, and track follow-ups to improve conversion rates.
ROAS Calculator FAQs
What is ROAS?
ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent on advertising. A ROAS of 4x means you generated $4 in revenue for every $1 spent. It’s the most common top-level metric used to evaluate paid media performance.
What is a good ROAS?
For lead generation businesses, a good ROAS depends on how efficiently your leads convert into paying customers and the average value of each deal. Most lead-driven businesses aim for a minimum ROAS of around 3x, meaning every $1 spent on advertising generates at least $3 in revenue from closed deals.
What's the difference between ROAS and ROI?
ROAS only considers ad spend in the denominator, while ROI accounts for all costs (COGS, fulfilment, overhead). ROAS is a faster signal for ad efficiency; ROI tells you whether you’re profitable. Use both together for a complete picture.
Why does my ad platform ROAS look different from my true ROAS?
Ad platforms use their own attribution models (often last-click or view-through) which frequently over-credit their channel. When multiple platforms all claim credit for the same sale, your blended ROAS will be lower than any individual platform reports. The MER tab shows you the true blended picture.
How do agency fees affect ROAS?
Agency fees are a real cost of running ads, so excluding them overstates performance. This calculator lets you add a percentage-of-spend fee or a flat retainer so you can see your true cost-adjusted ROAS — the number that matters for profitability decisions.
Key Marketing Metrics Glossary
Cost Per Lead (CPL)
Measures how much advertising spend is required to generate one lead.
CPL = Ad Spend ÷ Leads Generated
Lead-to-Customer Conversion Rate
The percentage of leads that become paying customers.
Conversion Rate = Customers ÷ Leads
Cost Per Acquisition (CPA)
The cost required to acquire a paying customer from advertising.
CPA = Ad Spend ÷ Customers
Average Deal Value
The average revenue generated from each closed deal.
Cost Per Click (CPC)
The amount paid each time a user clicks on an advertisement.
CPC = Ad Spend ÷ Clicks
Click Through Rate (CTR)
The percentage of users who click on an ad after seeing it.
CTR = Clicks ÷ Impressions
Conversion Rate (CVR)
The percentage of visitors who complete a desired action, such as submitting a lead form.
CVR = Conversions ÷ Visitors
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