ROAS (return on ad spend) is the revenue your ads bring in for every rupee or dollar you spend on them. A 3.2× ROAS means ₹3.20 back for every ₹1 of ad spend. It's the quickest read on whether your ads are paying back, but it only tells you something useful once you compare it with your break-even ROAS.
How to use this calculator
- Choose ₹ or $ so the results show in your currency.
- Enter your ad spend for the period you want to check, such as last month or the last 7 days.
- Enter the revenue from those ads in the same period, taken from Ads Manager or from your store.
- Read the three results: ROAS as a multiple (3.2×), the return per ₹1 or $1 spent, and ROAS as a percentage (320%).
- To plan a campaign, use the Plan with a target ROAS panel. Enter a revenue goal and the ROAS you need, and it shows the most you can spend.
The formula
- ROAS = revenue from ads ÷ ad spend
- Return per ₹1 or $1 is the same number read as money: a 3.2× ROAS returns ₹3.20 per ₹1.
- ROAS % = ROAS × 100, so 3.2× is 320%.
- Maximum ad spend = revenue goal ÷ target ROAS
The planning formula is the first one turned around. If every ₹1 of ads must bring back ₹4 and you want ₹5,00,000 in revenue, you can't spend more than ₹1,25,000 to get it.
Worked example
In rupees. A store spends ₹40,000 on Meta ads in a month, and Ads Manager reports ₹1,28,000 in purchase value. ROAS = 1,28,000 ÷ 40,000 = 3.2×: ₹3.20 back per ₹1, or 320%.
In dollars. A store spends $2,500 and its ads bring in $8,000. ROAS = 8,000 ÷ 2,500 = 3.2×. Next quarter it wants $20,000 a month at a 2.5× target ROAS, so its maximum ad spend is 20,000 ÷ 2.5 = $8,000 a month.
How to read your result
A ROAS figure is neither good nor bad until you know your margins. At 1× you get back exactly what the ads cost, but you still have to pay for the product, shipping and fees, so you're losing money. The line that matters is your break-even ROAS: price ÷ contribution margin per order.
Example: if a ₹1,000 order leaves you ₹500 after product, shipping and fees, you break even at 2×, and a 3.2× ROAS is profitable. If it leaves only ₹250, you break even at 4×, and the same 3.2× loses money on every sale. Find your number with the break-even ROAS calculator before you judge any campaign.
Platform ROAS vs real ROAS
The ROAS in Ads Manager counts purchases Meta attributes to your ads within your attribution window. It can include view-through and estimated conversions, and it knows nothing about returns, cancellations or COD parcels refused at the door. Depending on how your pixel is set up, the purchase value may also include tax and shipping.
Real ROAS comes from your store: delivered revenue from the orders your ads drove, measured against ad spend. UTM parameters on your ad links help your store analytics tell those orders apart. As a whole-business check, track MER (total revenue ÷ total marketing spend) alongside platform ROAS. If the two drift apart, check your tracking before you change budgets.
How to improve your ROAS
ROAS splits into four levers. Write CTR and conversion rate as decimals (1.5% = 0.015):
ROAS = (CTR × conversion rate × average order value × 1,000) ÷ CPM
The levers multiply. Lift CTR, conversion rate or order value by 20% and ROAS rises by 20%, all else equal. Cut CPM by 20% and ROAS rises by 25%.
| Lever | What it measures | Ways to move it |
|---|---|---|
| CTR | Share of impressions that become link clicks | Sharper hooks, a clearer offer, fresh creative |
| Conversion rate | Share of clicks that become purchases | Faster pages, clear price and delivery terms, reviews, a short checkout |
| Average order value | Revenue per order | Bundles, free-shipping thresholds, add-ons |
| CPM | Cost of 1,000 impressions | Broader audiences, more placements, creative people engage with |
Fix the weakest lever first. If people click but leave your product page, a new ad won't solve it. A better page will. Fly ROAS analytics break ROAS into these same four drivers (click-through, conversion rate, order value and cost of reach) and show which one moved when results change. Whatever you use, recalculate after every change so you know what actually worked.
Frequently asked questions
How do you calculate ROAS?
Divide the revenue your ads generated by what you spent on them: ROAS = revenue ÷ ad spend. For example, ₹1,28,000 of revenue from ₹40,000 of spend is a 3.2× ROAS, or ₹3.20 back for every ₹1. Multiply by 100 to express it as a percentage, in this case 320%.
What is a good ROAS for Facebook ads?
A good ROAS is one comfortably above your break-even ROAS, and that depends on your margins rather than an industry average. If each order leaves you 50% of the price after product, shipping and fees, you break even at 2×. At 25%, you need 4×. Benchmarks vary by country, category, season and offer, so work out your own break-even point first.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares profit with the total cost, including product, shipping, fees and ads. A 3× ROAS can still mean a loss if your margins are thin, which is why you need your break-even ROAS to judge it.
How much can I spend to hit a target ROAS?
Divide your revenue goal by your target ROAS. To make ₹5,00,000 at a 4× ROAS you can spend up to ₹1,25,000, and to make $20,000 at 2.5× the ceiling is $8,000. If your actual ROAS comes in below target, spending the full amount won't deliver the goal.
Why doesn't my Meta ROAS match my store's revenue?
Ads Manager counts purchases Meta attributes to your ads within your attribution window, which can include view-through and estimated conversions. It doesn't subtract returns, cancellations or refused COD orders, and depending on your setup the value may include tax and shipping. Cross-check it against delivered revenue in your store and your MER (total revenue ÷ total marketing spend).
