Ad ROAS & Revenue Targets

Calculate attributed revenue per advertising dollar and the gap to your own ROAS target. Includes a worked example, scope checks and an editable canvas.

Income & budgetsCalvanceUpdated 3 formulas
Worked exampleExported from Calvance
Ad ROAS & Revenue Targets · Attributed revenue minus target: -200 USD
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Exported by the iOS App After importing, edit the numbers in Calvance.

When to use it

For advertisers with ad spend and attributed sales revenue measured on the same basis. This simulated USD example checks a report against a self-chosen target; it does not predict incremental sales or recommend a bidding strategy.

Inputs

USD

Inputs Default
Advertising spend 500
Attributed sales revenue 1,800
Target ROAS multiple (×) 4

Calculation method

ROAS = attributed sales revenue ÷ ad spend. Target revenue = ad spend × target multiple. Revenue gap = attributed revenue − target revenue; a negative gap is a shortfall. $1,800 revenue on $500 spend is 3.6×. A 4× target requires $2,000, leaving a $200 shortfall. Enter 4 for four times, not 400.

1,800 [Attributed sales revenue]/500 [Advertising spend] → Actual ROAS multiple ×

Advertising spend × 4 [Target ROAS multiple ×] → Revenue needed for target

Attributed sales revenue - Revenue needed for target → Attributed revenue minus target

Change one input

Change spend from $500 to $600 while holding attributed revenue at $1,800. ROAS falls to 3× and the shortfall grows to $600. This isolates a cost change; it does not predict how actual revenue responds to a larger budget.

Result Default Changed
Actual ROAS multiple (×) 3.6 3
Revenue needed for target 2,000 2,400
Attributed revenue minus target -200 -600

Results are displayed to at most two decimal places; later formulas use unrounded values.

Scope and limits

  • Ad spend must be positive; revenue and target must be nonnegative.
  • Use the same currency, reporting basis and attribution window.
  • ROAS measures revenue against ad spend, not profit.

Use attributed sales revenue with a defined treatment of refunds, discounts and taxes. Do not mix total store sales or lifetime customer value with unrelated current-period spend, or add overlapping platform attributions. A platform’s conversion value may be a custom score rather than revenue. The 4× example is not an industry benchmark, and attributed revenue does not prove causal lift.

Download and import into Calvance to edit the numbers. The canvas does not reject every invalid input; check the stated ranges.

Common questions

Does ROAS above 1 mean profit?

No. Product costs, fulfilment, fees and overheads remain unpaid. Revenue minus advertising is not net profit, and ROAS minus one is not a complete business ROI.

Why do some dashboards show 400%?

400% and 4× express the same ratio. This canvas uses multiples. Zero revenue gives zero ROAS; zero spend makes the ratio undefined.

References

Google Ads explains the ROAS ratio. This example restricts conversion value to attributed sales revenue.

If you earn money by displaying ads on your own site, use website ad revenue instead.

How to import your template

  1. Save the file. Choose Download template and save the .calvx file to Files on your iPhone or iPad. From a computer, you can send it to your device with AirDrop.
  2. Open Import. In All Canvases in Calvance, tap the add button to open the template screen, then choose Import.
  3. Choose the file. Select the saved .calvx file to create your own canvas. Importing uses one canvas from your allowance.
  4. Edit and check. Check the results against the worked example, then add your numbers. Duplicate the canvas to keep different versions.
Download .calvx file

Different tasks.
Separate canvases.

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