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Return on Ad Spend Goal Calculator

Enter a revenue target, target ROAS and average order value to plan your ad spend.

How it is calculated

The tool works backwards from a revenue goal. ad budget = revenue target ÷ target ROAS, orders needed = revenue target ÷ average order value, and maximum cost per order = ad budget ÷ orders needed. ROAS is expressed as a multiple, so 3.5 means 3.5 dollars of revenue for every dollar of ad spend. Revenue target and order value are in dollars. The orders figure is rounded to a whole number for display, while the cost per order is calculated from the unrounded count. All three inputs must be above zero. The tool works on revenue, not profit, so it does not know your margin; a ROAS that is profitable depends on your costs. A ROAS below 1 is accepted and gives a budget larger than the revenue.

Worked example

A store wants 60,000 in revenue, targets a ROAS of 3.5 and has an average order value of 85. Ad budget: 60,000 ÷ 3.5 = $17,142.86. Orders needed: 60,000 ÷ 85 = 705.9, shown as 706. Maximum cost per order: 17,142.86 ÷ 705.9 = $24.29, which is the same as 85 ÷ 3.5. If each order costs more than $24.29 in ads, the campaign will miss the 3.5 ROAS target.

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Common mistakes

  • Entering profit as the revenue target. The tool treats it as sales revenue, so the ad budget will be too small.
  • Entering ROAS as a percentage, such as 350 for 3.5x. The field is a multiple, and 350 gives a budget of about $171.
  • Using the price of one item as the average order value when customers buy several items. Use total revenue divided by number of orders.
  • Setting a target ROAS without checking margin. A ROAS of 3.5 can still lose money on a product with a thin margin.
  • Treating the maximum cost per order as a goal rather than a ceiling. Staying under it keeps you at or above the target ROAS.

About this calculator

ROAS (Return on Ad Spend) measures revenue generated per dollar spent on advertising — a 4:1 ROAS means $4 in revenue for every $1 spent. Working backward from a revenue goal and a target ROAS, as this calculator does, tells you the maximum ad budget you can spend and still hit your target: budget = revenue goal ÷ target ROAS.

Performance marketers and e-commerce media buyers set target ROAS as their north-star metric for campaigns on Google Ads, Meta and TikTok, because it directly ties spend to a business outcome rather than to vanity metrics like impressions or clicks — a target ROAS is usually set from the store’s margin structure, since a low-margin product needs a much higher ROAS to be profitable than a high-margin one. Once budget and average order value are known, dividing budget by AOV also gives the order count the campaign needs to deliver, and dividing budget by that order count gives the maximum cost-per-order the campaign can tolerate before it stops being profitable — the exact numbers agencies report back to clients when planning a spend allocation.

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