How ROAS is calculated
ROAS (return on ad spend) = attributed revenue ÷ ad spend. A ROAS of 4× means every ₹1 (or $1) of ads brought back ₹4 in revenue.
Cost per lead (CPL) = ad spend ÷ number of leads. Cost per customer (CPA) = ad spend ÷ customers won, where customers = leads × your close rate. Net return = revenue − ad spend, and the margin is net return as a share of revenue.
What is a good ROAS?
It depends on your gross margin. A business with 30% margins needs roughly 3.3× ROAS just to break even on product costs, while a high-margin service business can be profitable at 2×. Use the break-even ROAS (1 ÷ gross margin) as your floor and judge campaigns against it.
This calculator treats revenue as gross revenue and does not subtract product, delivery or agency costs — so the “net return” is the return over ad spend only, not your final profit.
Frequently asked questions
What is ROAS?
ROAS stands for return on ad spend. It is the revenue generated by advertising divided by the money spent on that advertising. ROAS 3× means ₹3 of revenue for every ₹1 spent.
How do I calculate ROAS from Meta Ads Manager?
Use the purchase conversion value (or the revenue your CRM attributes to the campaign) as revenue and the amount spent as spend, for the same date range. Meta also shows a “Purchase ROAS” column that uses the same formula.
What is the difference between ROAS and ROI?
ROAS only compares revenue with ad spend. ROI compares profit with the total investment, including product costs, salaries and fees. A campaign can have a good ROAS and still lose money if margins are thin.
What is a good cost per lead?
There is no universal benchmark: it depends on your industry, offer and close rate. Work backwards from what a customer is worth — if a customer brings ₹20,000 profit and you close 10% of leads, you can afford up to ₹2,000 per lead and still break even.
Is my data saved?
No. The calculation runs entirely in your browser and nothing you type is sent to our servers. The share link simply contains your numbers in the URL.
