ROAS Calculator: Quickly measure your return on ad spend

ROAS or Return on Ad Spend, measures how much revenue you earn for every dollar spent on advertising. The ROAS formula is simple: Revenue ÷ Ad Spend. Unlike ROI, ROAS focuses solely on ad performance. Knowing how ROAS is calculated helps optimize campaigns across platforms like Google Ads, Facebook Ads, e-commerce and creative tools like Picsart’s Ad Maker.

Understanding how to calculate ROAS gives you a powerful edge. It helps you allocate budgets efficiently, optimize ad performance in real time and uncover deeper profitability insights. By calculating ROAS, marketers can make data-driven decisions that scale success across ad platforms and campaign types.

To calculate ROAS, use the formula: (Revenue from advertising ÷ Cost of advertising) × 100. This tells you how much revenue you earn for every dollar spent. For example, if you spent $1,000 on Facebook ads and made $3,000 in revenue, your ROAS would be ($3,000 ÷ $1,000) × 100 = 300%. Understanding the ROAS calculation formula is key to evaluating ad performance. The built-in Picsart ROAS Calculator helps you get accurate results fast, so you can focus on campaign strategy without manual number crunching.

Break-even ROAS is the return needed to cover your ad costs. It’s calculated with the formula: 1 ÷ Profit Margin. For example, with a 25% profit margin, your break-even ROAS is 1 ÷ 0.25 = 4.0. Picsart’s breakeven ROAS Calculator helps determine this threshold instantly, ensuring campaigns remain profitable from the start.

A target ROAS is the goal you set to ensure campaigns remain profitable as you scale. Using a target ROAS Calculator helps you plan smarter budgets and calculate return on ad spend more effectively. Set realistic goals by referencing industry benchmarks and adjust based on performance to drive consistent, data-backed growth.