Calculator
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.
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
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
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 |
| 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 SpreadsheetMaking Better Decisions
Stop optimising for ROAS alone. Instead:
- Know your break-even ROAS: Based on actual margin, not revenue
- Use consistent attribution: Pick a model and stick with it for fair comparison
- Look at blended metrics: MER and total profitability matter more than channel ROAS
- Test incrementality: Would these sales have happened without the ads?
- 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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