How do I know if my ROAS is “good”?

A good ROAS depends on your margins. A ROAS above 3x is a solid benchmark for many businesses, but targets vary by industry.

What’s the difference between ROAS and ROI?

ROAS focuses on revenue from ads vs ad spend, while ROI includes all costs. ROAS shows ad performance; ROI shows business profitability.

Why is my cost per acquisition (CPA) higher than expected?

High CPA could mean issues with targeting, messaging, or your website. It’s not always about budget — optimization is key.

My ads are getting clicks but no conversions — what does that mean?

This often means your landing page or offer isn’t aligned with your ad. Check for messaging mismatch, slow speed, or unclear CTAs.

How do I lower my cost per click (CPC)?

Improve ad quality, test different targeting, and use more relevant keywords. High relevance usually leads to lower CPCs.

What’s a good conversion rate?

A 2–5% conversion rate is typical for many small businesses. However, this depends on your industry, offer, and audience quality.

If my AOV is low, should I still run ads?

Possibly — but look into increasing your AOV through bundles or subscriptions to make paid ads more sustainable.

How often should I recalculate these numbers?

Check your ROAS monthly or after each campaign. Use the calculator whenever you plan or evaluate ad performance.

How do I know if my ROAS is “good”?

A “good” ROAS (Return on Ad Spend) depends on your margins. As a rule of thumb, a ROAS above 3x means you're earning $3 for every $1 spent being a great benchmark for many industries. Higher-ticket or high-margin businesses may aim for lower ROAS and still profit.

What’s the difference between ROAS and ROI?

ROAS looks strictly at how much revenue your ads generate compared to what you spent on them. ROI (Return on Investment) includes other costs like labor, tools, or fulfillment. ROAS tells you how your ads are performing. ROI tells you how your business is profiting overall.

Why is my cost per acquisition (CPA) higher than I expected?

A high CPA can mean your ads aren’t reaching the right audience, your offer isn’t converting, or your website needs improvement. It's not always about lowering your budget, sometimes small tweaks in targeting or landing pages can make a big difference.

My ads are getting clicks, but not conversions. What does that mean?

This usually points to a disconnect between your ad and what people find after clicking. It could be unclear messaging, slow website speed, or a call-to-action that doesn’t match what they expected.

How do I lower my cost per click (CPC)?

CPC depends on ad quality and competition. You can often reduce it by improving your ad relevance, using better keywords, narrowing your audience, or testing different platforms like Bing or Meta.

What’s a good conversion rate for my industry?

It varies, but 2–5% is a common baseline for many small businesses. Service-based businesses or local providers may see higher rates, while eCommerce can vary depending on product price and traffic quality.

If my average order value (AOV) is low, should I still run ads?

Possibly, but you may need to focus on increasing your AOV through bundles, upsells, or subscriptions. Ads are more sustainable when each customer generates enough value to offset the cost of acquiring them.

Home > Free Tools > ROI Calculator for Paid Ads

ROI Calculator for Paid Ads

Estimate your return on ad spend by entering campaign metrics below. This helps you understand how your paid traffic is performing.

Ad Spend ($)

The total budget for your campaign or ad period.

Cost Per Click (CPC) ($)

The average amount you pay for each click on your ad.

Conversion Rate (%)

The percentage of ad visitors who take your desired action.

Average Order Value ($)

The average revenue earned per conversion.

Why Use an ROI Calculator?

Running ads without knowing your numbers is like fishing without bait. Whether you're investing in Google, Facebook, or any other platform, understanding your return on ad spend (ROAS) is the key to growing profitably.

How It Works

Fill in the four inputs:

Ad Spend – How much you’re spending on your campaign
CPC – What you're paying per click
Conversion Rate – The % of visitors who take action
AOV – How much each customer spends on average

Once you click “Calculate ROI,” we’ll estimate how many clicks and conversions you can expect, what your revenue might be, and whether your ad spend is working hard enough for your goals.

Need Help Optimizing Your ROAS?

ScatterBranch Digital Marketing offers strategic advertising audits and hands-on support to help you make the most of your marketing budget. If your results aren't where you want them to be, I have PPC Management Services or reach out at info@scatterbranchmarketing.com

Common Advertising Reporting Questions

A “good” ROAS (Return on Ad Spend) depends on your margins. As a rule of thumb, a ROAS above 3x means you're earning $3 for every $1 spent being a great benchmark for many industries. Higher-ticket or high-margin businesses may aim for lower ROAS and still profit.
ROAS looks strictly at how much revenue your ads generate compared to what you spent on them. ROI (Return on Investment) includes other costs like labor, tools, or fulfillment. ROAS tells you how your ads are performing. ROI tells you how your business is profiting overall.
A high CPA can mean your ads aren’t reaching the right audience, your offer isn’t converting, or your website needs improvement. It's not always about lowering your budget, sometimes small tweaks in targeting or landing pages can make a big difference.
This usually points to a disconnect between your ad and what people find after clicking. It could be unclear messaging, slow website speed, or a call-to-action that doesn’t match what they expected.
CPC depends on ad quality and competition. You can often reduce it by improving your ad relevance, using better keywords, narrowing your audience, or testing different platforms like Bing or Meta.
It varies, but 2–5% is a common baseline for many small businesses. Service-based businesses or local providers may see higher rates, while eCommerce can vary depending on product price and traffic quality.
Possibly, but you may need to focus on increasing your AOV through bundles, upsells, or subscriptions. Ads are more sustainable when each customer generates enough value to offset the cost of acquiring them.
Ideally, you should check your ROAS every month or at the end of each campaign. Use this tool anytime you're testing a new strategy or planning your budget to make sure you're staying profitable.