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ROAS & Attribution Calculator

Understand your true return on ad spend. Model different attribution scenarios and see how they impact reported performance.

What is ROAS?

Return on Ad Spend (ROAS) measures the revenue generated for every pound spent on advertising. It’s the most common metric for evaluating paid media performance.

ROAS = Revenue ÷ Ad Spend

A ROAS of 5x means £5 revenue for every £1 spent on ads

Simple in theory. Complicated in practice. The challenge is that “revenue” can be calculated many different ways depending on how you attribute sales to marketing touchpoints.

Basic ROAS Calculator

Calculate Your ROAS

Your ROAS
5.0x

Why ROAS Lies (Without Context)

A 5x ROAS sounds great. But is it profitable? That depends on factors ROAS doesn’t capture:

  • Profit margin: If your margin is 20%, you need 5x ROAS just to break even on ad costs
  • Customer lifetime value: First purchase might show 2x ROAS, but customer buys 5 more times
  • Attribution model: Last-click might show 8x, data-driven might show 4x for the same campaign
  • New vs returning customers: Retargeting shows higher ROAS but these customers might have converted anyway
The Profitable ROAS Threshold: To find your break-even ROAS, divide 1 by your profit margin. If margin is 25%, break-even ROAS = 1 ÷ 0.25 = 4x. Anything above 4x is profitable ad spend.

Attribution Models Compared

The same campaign can show wildly different ROAS depending on how you attribute conversions:

Attribution Model How It Works Typical Impact
Last Click 100% credit to final touchpoint Inflates branded/retargeting, undervalues awareness
First Click 100% credit to first touchpoint Inflates awareness campaigns, undervalues conversion
Linear Equal credit to all touchpoints Fair but doesn’t reflect actual impact
Time Decay More credit to recent touchpoints Balanced but still favours bottom-funnel
Position Based 40% first, 40% last, 20% middle Good for most businesses, popular default
Data-Driven Algorithm assigns credit based on actual paths Most accurate but needs volume to work

ROAS by Channel: What’s “Good”?

Benchmarks vary by industry, but here are general guidelines:

Channel Typical ROAS Notes
Google Search (Brand) 10-30x Should be high because they’re searching for you
Google Search (Non-Brand) 3-8x Competitive, intent-driven
Google Shopping 4-10x Product-dependent, margin matters
Meta (Facebook/Instagram) 2-6x Lower intent, higher volume potential
Retargeting 8-15x Inflated: be careful with incrementality
LinkedIn 1-3x Expensive CPCs, B2B focus, longer sales cycle

Beyond ROAS: Metrics That Matter

ROAS is useful but incomplete. Consider these alongside:

  • POAS (Profit on Ad Spend): Revenue minus COGS, divided by ad spend. More accurate for profitability.
  • MER (Marketing Efficiency Ratio): Total revenue divided by total marketing spend. Holistic view.
  • CAC (Customer Acquisition Cost): Total spend divided by new customers. Essential for LTV analysis.
  • Contribution Margin: Revenue minus variable costs. What actually flows to the bottom line.
  • Blended ROAS: All revenue divided by all spend. Cuts through attribution games.

Download the Spreadsheet Calculator

Get the full Google Sheets calculator with ROAS, POAS, MER, and attribution modelling tabs.

Request Spreadsheet

Making Better Decisions

Stop optimising for ROAS alone. Instead:

  1. Know your break-even ROAS: Based on actual margin, not revenue
  2. Use consistent attribution: Pick a model and stick with it for fair comparison
  3. Look at blended metrics: MER and total profitability matter more than channel ROAS
  4. Test incrementality: Would these sales have happened without the ads?
  5. Consider LTV: First-purchase ROAS isn’t the full picture

Want help building an attribution model that reflects reality? Book a strategy session and we’ll review your current setup.

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