How Can I Compare My Ad Spend to the Revenue It Generates?

The calculator allows you to input your total ad spend and the revenue generated, providing a clear comparison that highlights your campaign’s financial performance. It uses the formula: Return on Ad Spend (ROAS) = Revenue from Ads ÷ Ad Spend

Can This Tool Show If My Campaigns Are Profitable?

Yes! The tool calculates profitability by analyzing your revenue in relation to your ad spend, helping you determine if your campaigns yield positive returns.

Does the Calculator Help Identify High-Performing Ads?

Absolutely. By breaking down data for individual campaigns, you can pinpoint ads with the best ROAS and focus on scaling them.

How Does the Calculator Calculate Return on Investment (ROI)?

The calculator divides the net revenue (revenue minus ad spend) by the ad spend, then multiplies by 100 to provide the ROI percentage.

Can I Track Ad Spend Versus Revenue Across Multiple Campaigns?

Yes. The tool supports tracking multiple campaigns, enabling you to compare their performance side-by-side.

Is This Tool Useful for Setting Future Advertising Budgets?

Definitely, by analyzing past performance, you can use the insights to set realistic budgets that align with your revenue goals.

How Do I Know If My Ad Spend Is Too High for the Revenue Generated?

The calculator highlights the balance between spend and revenue. If your ROI or ROAS is low, it may indicate excessive spending relative to revenue.

Can I Use This Tool to Identify Where I Should Reduce Ad Costs?

Yes. The tool helps identify underperforming campaigns or channels where costs can be reduced without significantly impacting revenue.

Ad Spend vs Revenue Calculator | Measure Advertising ROI

7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones! That’s why extending your CLV is essential to a healthy business model & overall business strategy… Don’t believe us? Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.

Download

Why these 7 metrics are significant for your business and should be measured at regular intervals?

Generate real ROI on customer acquisition

Enhance your retention marketing strategy

Create more effective messaging, targeting & nurturing

How to Use the Calculator – Step-by-Step

Enter Revenue
Add the total revenue earned from your ad campaigns over a specific period.
Enter Ad Spend
Input the full amount spent on advertising for the same timeframe.
Click ‘Calculate’
Instantly view your ROAS and use the insights to guide budget shifts and campaign planning.

Tip: A ROAS above 1 means you’re earning more than you’re spending. Aim for a return on ad spend (ROAS) target that aligns with your industry and margins.

Understanding ROAS (Return on Ad Spend)

ROAS tells you how many rupees you earn for every rupee spent on ads. It’s one of the most critical metrics in performance marketing. A higher ROAS generally indicates a more efficient campaign; however, it should always be evaluated in conjunction with your margins and customer lifetime value.

Note: For more detailed marketing cost insights, try the Web Traffic Cost Calculator or Ad Spend vs. SEO ROI Calculator.

Industry Benchmarks for ROAS

While ROAS benchmarks vary depending on industry, platform, and product margins, here are general guidelines to evaluate your performance:

Industry	Typical ROAS
E-commerce	3.0 – 5.0
SaaS / B2B Services	2.0 – 4.0
Education & Online Courses	3.0 – 6.0
Travel & Hospitality	4.0 – 8.0
Health & Wellness	2.5 – 5.0
Consumer Goods	2.0 – 3.5

Note: A “good” ROAS depends on your business model, ad platform (e.g., Google Ads vs Meta Ads), and whether you’re measuring short-term purchases or long-term value. For deeper ROI tracking, combine ROAS with Customer Lifetime Value or Ad Spend vs. SEO ROI insights.

Practical Example

Scenario:

You spent ₹80,000 on ads and generated ₹240,000 in revenue.

Calculation:

ROAS = ₹240,000 ÷ ₹80,000 = 3.0

Interpretation:

For every ₹1 spent on advertising, you’re earning ₹3 in return. This is a strong ROAS depending on your industry and profit margins.

Tips to Improve ROAS

Enhance Ad Targeting: Focus on audiences most likely to convert.
Test Creatives: A/B test ad visuals, copy, and CTAs.
Optimise Landing Pages: Ensure a smooth post-click experience.
Use Conversion Tracking: Accurately measure what’s working.
Analyze Funnel Drop-offs: Identify and address areas of weakness in the user journey.

Other Calculator

Similar Blog's

How a never-ending fight between CPC & Ad position impacts Conversion Rates

The digital transformation is result of evolution in consumer behavior with increased internet penetration into almost every aspect of life.

How Controlling CPL can Increase Conversions in Google Ads

Google Ads have become the cornerstone for every digital marketer in internet marketing and it becomes necessary to scale up Google Ads campaign.

7 Best Landing Page Practices to Boost Conversions by 300%

Alot can be achieved by keeping a track of competitor traffic volumes and their customer approach strategies. Digital marketer will genuinely enjoy watching conversion boost.

5 Signs That Your Landing Page is Killing Your Conversion Rate

The reason for your landing page conversion rates falling is a practical and realistic scenario. How do you think you can resolve this crisis?

5 Tricks to Optimize Landing Page and Maximum Conversions with SEO

it’s critical to make sure that you optimize both for their intended purpose. To do that, you have to understand it differ in 4 key areas

How Keyword Match Types Can Help You Boost The Conversions

Once you’ve nailed the SEO, you can start building a thorough research on keyword match types to help boost conversions.

Offer’s

Energize Your Strategy: Claim Your FREE Ultimate Digital Marketing Checklist! Explore exclusive tips, innovative hacks, and customized insights for YOUR business triumph. Secure your game-changing resource today!

SEO-Focused Content Marketing for Business Growth: A Guide for VPs of B2B Companies

Download

SEO For Startups & Growth Fuelled by Content Marketing

Download

Google Ads Checklist

Download

Social Media Strategy Workbook

Download

7 Important Metrics for Startup

Download

Inbound Marketing Consultation

Download

Growth Hacking Consultation

Download

The Ultimate SEO Checklist

Download

Inbound Readiness Checklist

Download

SEO Quizzes

SEO quizzes: Interactive tools for learning and testing search engine optimization knowledge. Enhance skills, stay updated, and boost website visibility.

Advance Technical SEO Quiz For Experts & Professionals

Whether you’re an experienced SEO practitioner or a an unbeatable SEO expert, this Advance Technical SEO Quiz is a great way to assess your SEO knowledge. So, let’s get started and see how much you know! Good luck!

Test Now

Google's E-A-T Quiz: Determine your Expertise

Are you ready to assess your website’s E-A-T (Expertise, Authoritativeness, Trustworthiness) performance? Take our E-A-T quiz to get an understanding of where your website stands in terms of these essential SEO metrics.

Test Now

FAQs

Answers to Frequently Asked Questions

What is ROAS in advertising?

ROAS (Return on Ad Spend) measures how much revenue you earn for every rupee spent on ads. It’s a key metric to evaluate campaign efficiency.

How is ROAS calculated?

Divide total revenue from ads by total ad spend. A ROAS above 1 means your campaign is profitable.

What’s considered a good ROAS?

It depends on your industry, but a return on ad spend (ROAS) of 3–5 is generally considered strong for e-commerce and B2C.

Can I use this calculator for multiple campaigns?

Yes. Use it for individual campaigns or overall PPC performance by adjusting the input values accordingly.

Does ROAS include other costs, such as agency fees?

No. ROAS focuses on direct ad spend vs. revenue. For a broader view, factor in all marketing costs separately.

Is ROAS a sufficient metric to judge campaign success?

It’s essential, but not the only metric. Also consider lifetime value, conversion rates, and customer acquisition cost.

Should I calculate ROAS on a monthly basis?

Yes. Regularly tracking ROAS helps you stay agile and adjust strategies for better returns.

AI Driven Growth

Ad Spend vs Revenue Calculator

Analyse Campaign Profitability & Optimise Advertising ROI

Why Use This Calculator?

7 Important Metrics Every Startup Founder Should Care About

Why these 7 metrics are significant for your business and should be measured at regular intervals?

How to Use the Calculator – Step-by-Step

Understanding ROAS (Return on Ad Spend)

Industry Benchmarks for ROAS

Practical Example

Tips to Improve ROAS

Other Calculator

Similar Blog's

How a never-ending fight between CPC & Ad position impacts Conversion Rates

How Controlling CPL can Increase Conversions in Google Ads

7 Best Landing Page Practices to Boost Conversions by 300%

5 Signs That Your Landing Page is Killing Your Conversion Rate

5 Tricks to Optimize Landing Page and Maximum Conversions with SEO

How Keyword Match Types Can Help You Boost The Conversions

Offer’s

7 Keyword Grouping Strategies

1000+ Negative Keywords List to avoid Irrelevant Traffic

The SEO-Friendly Content Marketing Guide for VPs of B2C Businesses

SEO-Focused Content Marketing for Business Growth: A Guide for VPs of B2B Companies

SEO For Startups & Growth Fuelled by Content Marketing

Google Ads Checklist

Social Media Strategy Workbook

7 Important Metrics for Startup

Inbound Marketing Consultation

Growth Hacking Consultation

The Ultimate SEO Checklist

Inbound Readiness Checklist

SEO Quizzes

Advance Technical SEO Quiz For Experts & Professionals

Google's E-A-T Quiz: Determine your Expertise

FAQs

What is ROAS in advertising?

How is ROAS calculated?

What’s considered a good ROAS?

Can I use this calculator for multiple campaigns?

Does ROAS include other costs, such as agency fees?

Is ROAS a sufficient metric to judge campaign success?

Should I calculate ROAS on a monthly basis?

Refresh. Re-energise.??‍♂️

Keep Going!