Introducing Our ROAS Calculator
Our ROAS calculator lets you quickly see how well your ads perform. Just input your spend and revenue numbers, and the tool instantly shows whether your advertising is paying off.
ROAS or Return on Ad Spend measures how much money you earn for each pound or dollar spent on ads. Every marketer or business should know how to compute this as it can help focus the budget on campaigns that actually bring in profits.
If your B2B brand isn't tracking ROAS, you could be throwing money away on ads that don't work. Ignoring or not learning what ROAS is can risk wasting budget and missing chances to improve your marketing success in the long run.
How It Can Help Your B2B Brand
This tool can help you in four ways:
- Cut wasted ad spend. It helps you know if some campaigns are profitable or draining resources. By identifying poor performers early, you can stop funding ads that don't generate enough returns and invest in stronger ones instead.
- Focus on high-return campaigns. By calculating ROAS, you can identify your best-performing ads, which can help you double down on what works, channel more budget toward proven winners, and get the most out of every pound or dollar spent.
- Make data-backed decisions. With clear ROAS insights, you can back every marketing decision with numbers or quantitatively to justify spending and guide your team with confidence.
- Track impact over time. Monitoring ROAS regularly lets you see how campaigns improve or decline. These trends help your B2B brand make timely adjustments, preventing small drops from becoming major performance or budget problems.
How to Use the Tool
Using this tool is easy. Just enter a few key details, and you'll instantly see a clear breakdown of your results.
Enter the Following Information
- Ad Spend ($)
- The total cost you incurred for your advertising campaign.
- It includes ad platform fees, creative development, and any additional expenses.
- Check your ad platform invoices, marketing budgets, and any related creative or service costs.
- Ad Revenue ($)
- The total revenue generated from your advertising campaign.
- It includes sales figures, leads generated, or any other quantifiable revenue metric.
- Use your sales reports, CRM data, or lead tracking systems to calculate revenue tied to ads.
- Tick the box beside 'I don't know the ad revenue' if you don't have this info.
What You'll Get from Our Tool
- ROAS (%)
- The percentage return you get from your ad spend. Shows how much revenue you earn for every dollar spent on ads.
- Formula: (Ad Revenue ÷ Ad Spend) × 100%
- Ratio
- The amount of revenue earned for each $1 spent on ads. A 5:1 ratio means you earn $5 for every $1 spent.
- Formula: Ad Revenue ÷ Ad Spend
- Result Message
- A quick summary explaining your ROAS performance and what it means for your ad spend.
- Shows if your ROAS is above, at, or below the benchmark based on your inputs, helping you quickly judge campaign profitability.
- ROAS Progress Bar
- Shows if your ROAS meets or beats the typical benchmark (4:1).
- Based on your calculated ratio, the bar fills proportionally to your performance and visually shows how close you are to or beyond benchmark ROAS.
Your Next Steps
Once you have your results, here's how you can turn them into a plan that helps your B2B business grow.
- Set target ROAS. Use your current ROAS to set realistic goals for future advertising efforts. Having clear targets keeps your marketing focused and helps measure progress with achievable milestones.
- Review your profitability. Look at whether your ROAS meets or beats your target benchmark. If it is lower than expected, identify which campaigns are underperforming and decide if they should be adjusted or stopped.
- Allocate the budget wisely. Direct more of your ad spend toward campaigns that show the highest positive ROAS. This ensures more of your budget is working for you, rather than being wasted on poor performers.
- Investigate low performers. Dig into ads or channels with a low ROAS. Check targeting, creatives, and audience relevance to see what can be improved before deciding to cut them off entirely.
- Test and tweak. Use the insights from your ROAS to run small experiments. Try new ad creatives, adjust targeting, or refine your offers to see if you can lift the return on low- or mid-performing campaigns.