Return on Ad Spend Goal Calculator

About this calculator

ROAS (Return on Ad Spend) measures revenue generated per dollar spent on advertising — a 4:1 ROAS means $4 in revenue for every $1 spent. Working backward from a revenue goal and a target ROAS, as this calculator does, tells you the maximum ad budget you can spend and still hit your target: budget = revenue goal ÷ target ROAS.

Performance marketers and e-commerce media buyers set target ROAS as their north-star metric for campaigns on Google Ads, Meta and TikTok, because it directly ties spend to a business outcome rather than to vanity metrics like impressions or clicks — a target ROAS is usually set from the store’s margin structure, since a low-margin product needs a much higher ROAS to be profitable than a high-margin one. Once budget and average order value are known, dividing budget by AOV also gives the order count the campaign needs to deliver, and dividing budget by that order count gives the maximum cost-per-order the campaign can tolerate before it stops being profitable — the exact numbers agencies report back to clients when planning a spend allocation.

Enter your revenue target, target ROAS and average order value, and this calculator returns the ad budget, required order count and maximum cost per order in one step.