PRACTICAL CALCULATOR
ROAS Calculator
Calculate the revenue produced for every pound spent on advertising, then test how gross margin changes the commercial picture.
INDICATIVE RESULT
How the ROAS calculation works
ROAS divides revenue attributed to advertising by advertising spend. £8,000 revenue from £2,000 spend produces a ROAS of 4.0, or £4 revenue for every £1 spent.
Why margin still matters
Revenue is not profit. Product cost, fulfilment, sales time, agency fees, repeat purchases and customer lifetime value determine whether the return is commercially acceptable. The optional gross-margin result subtracts media spend from estimated gross profit; it remains an indicative comparison rather than an accounting result.