Free Tool
ROAS Calculator
Calculate your return on ad spend, see your real profit after COGS, and compare your performance against industry benchmarks.
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Industry ROAS Benchmarks
| Industry | Avg ROAS | Typical CPA | Your Position |
|---|---|---|---|
| Ecommerce (Apparel) | 4x | $25-45 | -- |
| Ecommerce (Beauty) | 3.5x | $20-40 | -- |
| Ecommerce (Electronics) | 5x | $30-60 | -- |
| Ecommerce (Home & Garden) | 4.5x | $25-50 | -- |
| SaaS / Software | 3x | $50-200 | -- |
| Lead Gen (B2B) | 2.5x | $50-150 | -- |
| Lead Gen (Local Services) | 3x | $20-80 | -- |
| DTC / Subscription | 2x | $30-60 | -- |
Understanding Your ROAS
The Formula
ROAS = Revenue from Ads ÷ Ad Spend Why Platform ROAS Is Misleading
Google Ads, Meta, and TikTok all report their own ROAS. The problem: they all claim credit for the same conversions. A customer who saw a Meta ad, clicked a Google ad, and bought — that purchase shows as revenue in both platforms. If you sum platform ROAS, you'll overcount revenue by 30-50%.
Use blended ROAS (total store revenue / total ad spend) for the real picture. Use platform ROAS for per-channel optimization only.
Read more: Why Your Meta ROAS Dropped (And What to Do)
Frequently Asked Questions
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 earn $4 for every $1 in ad spend.
What is a good ROAS?
A good ROAS depends on your industry and margins. Generally: 4x+ is excellent, 3x is good, 2x is marginal, and below 2x usually means you're losing money after accounting for COGS and overhead.
How is ROAS different from ROI?
ROAS measures revenue per dollar of ad spend only. ROI accounts for all costs including COGS, overhead, and salaries. ROAS is always higher than ROI because it ignores non-ad costs.
Why do Google Ads and Meta show different ROAS?
Each platform uses different attribution models and takes credit for conversions independently. The same purchase can show up as revenue in both platforms. Read our full explanation.
Is your tracking giving you the real ROAS?
Broken tracking inflates or deflates your ROAS. We check your conversion setup for free.
Free Tracking Scan