METHOD & GUIDANCE
How this calculation works
Keep every input on the same time basis—for example, one month or one financial year—and do not mix cash figures with accrual figures. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Compare headline ROAS with the break-even level implied by gross margin and campaign costs, then validate how revenue was attributed before increasing spend.
Worked example
The opening campaign spends 5,000 and attributes 20,000 revenue, producing 4× ROAS. Margin and other costs determine whether that return is actually profitable.
Common mistakes
- Treating revenue less ad spend as profit.
- Ignoring agency, creative or promotion cost.
- Crediting every conversion to one advertising channel.
Frequently asked questions
Is the roas calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Which period should I use?
Keep every input on the same basis—for example, one month or one financial year. Use current figures first, then save a cautious scenario for comparison.
Continue the decision
- Customer Acquisition Cost Calculator — Compare acquisition cost with estimated customer value.
- Profit Margin Calculator — See profit, margin and markup from one sale.
Popular small-business decision paths
- Build the next cash-flow forecast
- Measure how quickly invoices become cash
- Calculate UK late-payment interest
Method reviewed 5 August 2026. Figures are illustrative and calculated locally in your browser. Official sources are linked where a rule or obligation affects how the result should be used. Read the Tool IQ calculation standard for our checking process, limitations and corrections policy.