Marketing & growth
ROAS & CAC Calculator
Estimate return on ad spend and customer acquisition cost from your campaign revenue, ad spending and acquired customers.
Campaign performance
Use a consistent reporting period for each metric.
Campaign metrics
Results are estimates based on campaign attribution.
- ROAS
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- ROAS percentage
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- Ad-spend-only CAC
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- Attributed revenue
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Revenue generated per $1 of ad spend.
This excludes non-advertising acquisition costs. Unavailable when no new customers were acquired.
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How to interpret ROAS and CAC
A ROAS of 4× means $4 in attributed revenue for each $1 in ad spending; it does not mean you earned $3 in profit. Operating costs, refunds, discounts, and the cost of fulfilling the sale all matter when evaluating profitability.
Example: Spend $1,000 on ads, attribute $4,000 in revenue, and acquire 40 new customers. Your ROAS is 4× (400%) and the advertising portion of acquisition cost is $25 per new customer.
How to use ROAS and CAC together
ROAS tells you how much tracked revenue is attributed to each advertising dollar. CAC tells you how much it costs to acquire a new customer. Together, they help explain campaign efficiency, but neither is a complete measure of company profit.
| Example metric | Formula | Result |
|---|---|---|
| Ad spend | Given campaign cost | $1,000 |
| Attributed revenue | Tracked campaign revenue | $4,000 |
| ROAS | $4,000 ÷ $1,000 | 4.00× |
| Ad-only CAC | $1,000 ÷ 40 new customers | $25 |
Is a 4× ROAS profitable?
Not necessarily. A 4× ROAS means each $1 in ad spending is associated with $4 in revenue. Profitability also depends on what it costs to supply the products or services, platform fees, salaries, returns and other expenses. Your break-even ROAS can be much higher than 1× once product costs are included.
Why is this called ad-spend-only CAC?
A full customer acquisition cost typically includes more than the advertising budget: sales salaries, agency fees, software and campaign production can all contribute. This calculator divides only the entered ad spend by newly acquired customers. Use it as an advertising-specific metric, not a complete customer acquisition accounting measure.
Attribution matters
Ad platforms may use different attribution windows and methods. A customer may interact with several channels before purchasing, so attributed revenue is an estimate rather than a guaranteed causal effect. Use consistent attribution settings and compare campaigns over similar time periods.
ROAS vs. CAC: what do they mean?
ROAS = Attributed revenue ÷ Ad spend · CAC = Acquisition costs ÷ New customers
Return on ad spend (ROAS) compares revenue attributed to an advertising campaign with the advertising cost. Customer acquisition cost (CAC) divides the cost of acquiring customers by the number acquired. This calculator uses ad spend as its cost input, so the displayed customer acquisition cost represents an ad-spend-only CAC. A complete CAC calculation may also include salaries, technology, agencies and other sales or marketing expenses. ROAS measures revenue efficiency, not net profit.