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How-to guide

How to Calculate ROAS: Formula, Steps & Examples

Learn how to calculate ROAS — the formula explained step by step, with worked examples and a free calculator to check your answer.

By Priya Nair, MBA, Finance & Strategy · Updated Jun 2026 · 2 min read

Calculating your ROAS (return per ₹1 spent) is straightforward once you know the ROAS formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the ROAS Calculator.

What is ROAS?

The ROAS calculation tells you your ROAS (return per ₹1 spent) from a few simple inputs. The figure you are solving for here is the ROAS (return per ₹1 spent).

The ROAS formula

The core formula is:

ROAS (return per ₹1 spent) = Revenue from ads ÷ Ad spend

Here is what each input means:

  • Revenue from ads — a money amount. Example: ₹2,00,000.
  • Ad spend — a money amount. Example: ₹50,000.

How to calculate it step by step

  • Write down the revenue from ads (for example, ₹2,00,000).
  • Write down the ad spend (for example, ₹50,000).
  • Apply the formula above to get your ROAS (return per ₹1 spent).
  • Double-check the result with the ROAS Calculator.

Worked examples

Example 1

Input / OutputValue
Revenue from ads₹2,00,000
Ad spend₹50,000
ROAS (return per ₹1 spent)4.00
ROAS as a percentage400%

With revenue from ads of ₹2,00,000 and ad spend of ₹50,000, the ROAS (return per ₹1 spent) works out to 4.00.

Example 2

With revenue from ads of ₹4,00,000 and ad spend of ₹50,000, the ROAS (return per ₹1 spent) works out to 8.00.

ResultValue
ROAS (return per ₹1 spent)8.00
ROAS as a percentage800%

Example 3

With revenue from ads of ₹1,00,000 and ad spend of ₹50,000, the ROAS (return per ₹1 spent) works out to 2.00.

ResultValue
ROAS (return per ₹1 spent)2.00
ROAS as a percentage200%

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.

Prefer not to do the maths by hand? — the ROAS Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring marketing calculators with these tools: LTV to CAC Ratio Calculator, Conversion Value Calculator, Customer Churn Cost Calculator, Ad Frequency Calculator, Viral Coefficient Calculator.

Calculators in this guide

Frequently asked questions

The formula is: ROAS (return per ₹1 spent) = Revenue from ads ÷ Ad spend. With revenue from ads of ₹2,00,000 and ad spend of ₹50,000, the ROAS (return per ₹1 spent) works out to 4.00.

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the ROAS Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

Priya Nair · MBA, Finance & Strategy

Priya Nair is a business analyst and MBA who advises small businesses and startups on pricing, unit economics and growth metrics.