ROAS Calculator
Determine your Return On Ad Spend to gauge ad profitability.
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Why ROAS is a Dropshipper's Best Friend
Return On Ad Spend (ROAS) is a key performance indicator (KPI) that measures the effectiveness of your advertising campaigns. It answers the question: 'For every dollar I spend on ads, how many dollars do I get back in revenue?'
Formula: `Total Revenue from Ads / Total Ad Spend`.
A ROAS of 3:1 means you generate $3 in revenue for every $1 spent on ads. While a high ROAS is great, it must be considered alongside your profit margins. A high ROAS on a low-margin product might be less profitable than a lower ROAS on a high-margin product. Use this tool to quickly assess campaign performance and make data-driven decisions.