We have provided a useful ROAS Calculator below to work out your Return On Ad Spend.
Feel free to experiment with different scenarios in order to help you better understand this metric.
What Does ROAS Mean?
ROAS stands for Return On Ad Spend and means the amount of money you get back from the amount of money you put into advertising. It is used to answer the question “If I spend one more dollar, how much would I get back in return”.
It differs from ROI, in that ROI takes into account all the money that you have spent. ROI is used for long term planning and measuring. ROAS is used for deciding where to place more budget in the short term.
The ROAS equation is:
ROAS = Amount Gained From Ads ÷ Amount Spent On Ads
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