ROAS & ACQUISITION COST CALCULATOR
Calculate return on ad spend, customer acquisition cost and contribution after advertising, acquisition and fulfillment costs. Use your own campaign figures.
THE CLEARER PICTURE
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A LITTLE CONTEXT GOES A LONG WAY
ROAS = attributed revenue ÷ ad spend. If 1,000 of advertising is associated with 4,000 of revenue, ROAS is 4×, or four units of revenue for each unit of ad spend. This is a revenue ratio, not a profit percentage or a claim that advertising caused every sale.
Customer acquisition cost = (advertising spend + other entered acquisition costs) ÷ new customers. Use the same period and attribution scope for revenue, costs and customer count. Repeat buyers should not inflate the count of newly acquired customers.
Contribution after entered costs = revenue − ad spend − other acquisition costs − fulfillment costs. This excludes overhead, financing costs and taxes unless you have included them in your inputs. A strong ROAS can still accompany a weak contribution if product costs or acquisition expenses are high.
Created by Ostro. Read our editorial standards or report a correction. The guide above explains the method, assumptions and examples.
GOOD TO KNOW
There is no universal target. The return needed depends on your costs, gross margin, repeat business and attribution method. Use the contribution result to interpret the ratio in the context of your own inputs.
ROAS has no defined value with zero ad spend. Acquisition cost has no defined value with zero new customers. The tool shows this explicitly instead of presenting infinity or a misleading zero.
No. Your entries stay in this open page and reset when you refresh or leave. There is no account, autosave or cloud storage. Download or copy what you need before closing the page.
