A Return on Ad Spend (ROAS) calculator is a tool used to measure the success of a marketing campaign or advertisement. It is a measure of how much revenue a business has generated from the money they have spent on advertising.
The calculator compares the return on investment (ROI) with the advertising expenditure (Ad spend). The components of a Return on Ad Spend (ROAS) calculator are the Ad spend and Ad revenue.
Ad spend refers to the total money spent on advertising, while Ad revenue is the total money earned from an advertising campaign. To calculate the ROAS, you will need to divide the Ad revenue by the Ad spend. This will give you a number expressed as a percentage. For example if a company spent $1,000 on an advertising campaign, and the Ad revenue from that campaign was $2,000, then the ROAS percentage would be 200%.
The formula for calculating the ROAS is:
ROAS (%) = Ad revenue / Ad spend x 100
The ROAS ($) is calculated by subtracting the Ad revenue from the Ad spend. For example, if the Ad spend is $1,000 and the Ad revenue is $2,000 the ROAS ($) is $1,000.
