ROAS Calculator
ROAS (Return on Ad Spend) is a marketing metric that shows how much gross revenue is generated for every unit of money spent on an advertising campaign.
Key Terms
- Ad Spend: The total advertising cost paid for the campaign (Google Ads, Facebook Ads, etc.).
- Ad-Generated Revenue: The total sales revenue generated as a result of this spend.
- ROAS: The ratio obtained by dividing revenue by spend. It is usually expressed as "X times" or a "Percentage".
Formula
ROAS = Ad-Generated Revenue / Ad Spend
ROAS (%) = (Ad-Generated Revenue / Ad Spend) * 100
How to Interpret?
For example, if you spend 1,000 TL on ads and generate 5,000 TL in revenue:
- ROAS: 5.0 (Or 5X)
- ROAS (%): 500%
This means that for every 1 TL you spend, you earn 5 TL in revenue. The ideal ROAS target may vary depending on the industry and your product profit margin.