How to use this ROAS Calculator
- Put in what you spent.
What you actually spent on ads for the period you’re measuring (week/month/campaign). If you’re running a campaign that is scheduled to last a season or longer, you need to make sure you regularly check the ROAS to determine if its lost its effectiveness. - Put in what you got back.
Revenue from jobs that came from those ads during that same period. Use your tracking: call tracking, form fills, booked jobs tagged to the campaign, invoices tied to those leads. - Then hit Calculate.
Enter your numbers and hit “Calculate ROAS”.
What information does it provide?
- ROAS ratio (like 3.5:1) meaning “$3.50 back for every $1 spent”
- ROAS % (same thing shown as a percent)
- A verdict:
- ≤ 2:1 (≤ 200%) = bad
- 2.01–4:1 (201–400%) = needs improvement
- > 4:1 (> 400%) = good, keep doing it
Why use it: it tells you fast if your ads are paying for themselves, or if you need to fix targeting, follow-up, close rate, or average ticket before you spend more.
Why is it a necessary calculation?
ROAS answers one simple question: for every $1 you spend on ads, how many dollars come back. Without that number, you’re guessing – and we don’t want to guess, we want precision.
It’s necessary because it helps you:
- Decide what to scale vs cut. If one campaign is 5:1 and another is 1:1, you have a fast answer.
- Catch problems early. If ROAS drops, something broke (targeting, tracking, call answering, follow-up, close rate). Now you can find out where it broke and fix/improve it.
- Set a minimum bar. Ads are not a hobby. If they can’t beat your desired outcome or revenue numbers, they don’t deserve more budget.
- Compare apples to apples. This means look at how different platforms, seasons, zip codes, offers perform. ROAS normalizes that information.
- It helps you tell what to do next and set a historical basis for what works. Next you need to examine how it works – then you can keep repeating it, or scale it and head on over to our ROI Calculator to figure out your total return.
In short: it keeps you from spending money based on vibes.
