Lido's free ROAS calculator makes it simple to find out your return on ad spend for any advertising campaign.
The formula for ROAS is:
ROAS = (Return on ad spend/ Cost of advertising) * 100
For example, if we have a marketing campaign that generated $10,000 dollars and the total amount we spent on ads was $2,500 then our return on ad spend would be:
($10,000 / $2,500 )*100 = 400%
This means you earn $4 for every $1 you spend.
It's not uncommon for people to not multiply the total amount by 100 and simply say they have a ROAS of 4. Remember that a high ROAS does not necessarily mean you have a high profit margin. It just measures revenue generated relative to ad spend. To increase your ROAS one of the key metrics you can improve is your click through rate. Check out our ctr calculator to get a better understanding of this KPI.
To get a better understanding of metrics for a facebook ads campaign, we recommend checking out our facebook ad cost calculator to to get more insights into your marketing.
