ROAS calculator
Get the arithmetic right before you interpret the result.
ROAS = revenue from ads ÷ ad spend
₹3,00,000 of revenue from ₹1,00,000 of ad spend is a 3.0x ROAS.
Calculated result—
How to read the result
- Compare ROAS with your break-even ROAS, not with another brand's: margins differ.
- Use revenue net of discounts and cancellations, or ROAS will look better than it is.
- For COD-heavy brands, use delivered revenue; RTO orders are not revenue.
ROAS alone does not tell you contribution margin or profit. Your numbers tell you what you can afford; your rivals' ads tell you what the market is testing. See what Indian D2C brands are running.
Questions people ask
What is the formula?
ROAS is revenue divided by advertising spend.
Does ROAS equal profit?
No. Profit also depends on product economics and other costs.