How to Calculate Return on Ad Spend (ROAS) for Facebook Ads
When it comes to Facebook Ads, there’s one number that tells you everything you need to know: Return On Ad Spend (ROAS).
Whether you’re launching your first campaign or scaling to six or seven figures, understanding your ROAS is what separates guesswork from growth.
Here’s what it is, why it matters, and how to calculate it — step by step.
ROAS stands for Return on Ad Spend — a simple way to measure how much revenue you generate for every dollar you spend on Facebook ads.
Put simply:
ROAS = Revenue from Ads ÷ Cost of Ads
If you spent $1,000 on ads and made $5,000 in sales, your ROAS would be 5x.
That means for every $1 you spent, you made $5 back.
Why ROAS Matters:
ROAS gives you a real-time look at your profitability and performance. It helps you make data-driven decisions like:
✅ Which ad campaigns are working (and which to turn off)
✅ Where to scale your budget with confidence
✅ How much you can afford to pay per lead or customer
✅ Whether your offer, messaging, or funnel needs refinement
It’s not just about spending less — it’s about spending smart.
How to Calculate ROAS (Step by Step)
Here’s how to do it manually or with a simple tool like a spreadsheet:
Track Total Ad Spend
Look in Ads Manager to see exactly how much you’ve spent over a campaign period.Track Revenue from Ads
This could be total purchases tracked through your pixel, CRM, or sales dashboard. Be sure to separate organic sales from paid traffic (if possible).Use the Formula:
ROAS = Revenue ÷ Ad Spend
Example:
Ad Spend = $2,000
Revenue = $10,000
ROAS = 10,000 ÷ 2,000 = 5x ROAS
What’s a “Good” ROAS?
It depends on your business model, margins, and funnel.
Here’s a loose guide:
2x ROAS = Breakeven or low profit (especially if you have high costs)
3–4x ROAS = Healthy for most coaching, course, or service brands
5x+ ROAS = Scalable and highly profitable
High-ticket offers and low overhead businesses (like digital courses or mentorship programs) often thrive at 3–5x ROAS and beyond.
Bonus: What ROAS Doesn’t Tell You
ROAS is powerful — but it’s not the whole picture.
Here’s what else you need to look at:
Lead Quality – Are your leads converting beyond the ad click?
Lifetime Value (LTV) – Are people buying more from you over time?
Backend Conversions – Are your emails, funnels, and sales calls aligned?
The best campaigns are built from both strategy and soul — data and energy. That’s what makes them scalable.
Final Thoughts
You don’t need to obsess over the algorithm.
You need to know your numbers — and align your marketing with your mission.
ROAS helps you stay focused, grounded, and strategic… even when the noise online gets loud.
If you're ready to run campaigns that not only look good but perform powerfully...
💬 [Join Magnetic Ads Academy] or [Book a Strategy Call] to get clear, confident, and converting Facebook Ads fast!
