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ROAS calculator

Enter ad spend and the revenue it brought in to get return on ad spend (ROAS), as a ratio and a percentage, with a plain-English read of the result.

Your own target. We do not publish one.

My numbers

Save your own numbers once and reuse them in every calculator. They stay in this browser; nothing is sent to us.

Which numbers are saved?
  • First-order revenue per patient (AOV): not saved
  • Medication / product cost per order (COGS): not saved
  • Clinician consult cost per patient: not saved
  • Pharmacy dispensing / fulfillment fee: not saved
  • Shipping per order: not saved
  • Payment processing: not saved
  • Refund + chargeback rate: not saved
  • Monthly churn: not saved
  • Patient acquisition cost (CAC): not saved
  • Monthly ad spend: not saved

ROAS

Enter your numbers to see the result.

Free tool by Telehealth Media · telehealthmedia.com

Next: work out the ROAS you need to break even with the full telehealth cost stack.

How it works

ROAS, return on ad spend, is the revenue your ads brought in divided by what you spent on them. It answers one question: for each dollar of ad spend, how many dollars of revenue came back?

  • ROAS = attributed revenue / ad spend
  • ROAS as a percentage = ROAS x 100
  • Revenue minus ad spend = attributed revenue - ad spend

Revenue minus ad spend is not profit. It is what is left before medication, consult, pharmacy, shipping, payment fees and refunds. In telehealth those costs are often a large share of each order, so a ROAS that looks healthy can still lose money.

That is why this calculator pairs with the break-even ROAS calculator: ROAS tells you what happened, break-even ROAS tells you whether it was enough.

The target field is yours to fill. We do not publish a target ROAS, because the right number depends on your own costs and refill rate.

Worked example

An account spent 1,000 USD and Ads Manager attributes 3,200 USD of revenue to it.

Worked example
StepCalculationResult
ROAS3,200 USD / 1,000 USD3.2x
ROAS as a percentage3.2 x 100320%
Revenue minus ad spend3,200 USD - 1,000 USD2,200 USD

Whether 3.2x is good depends on the break-even ROAS for the same treatment. These numbers illustrate the formula; enter your own.

Telehealth notes

  • Use first-order revenue in the first days after launch. Refill revenue arrives later and is rarely attributed to the ad that found the patient.
  • Attribution windows matter. A 7-day click window and a 1-day click window give different ROAS for the same campaign. Compare like with like.
  • ROAS, MER and POAS answer different questions. ROAS looks at attributed revenue from ads; MER (marketing efficiency ratio) divides all revenue by all ad spend; POAS uses gross profit instead of revenue. Telehealth brands with high medication costs usually need POAS or break-even ROAS to make decisions.
  • If the result drops week after week on the same ads, the ads may be tiring. New angles usually move ROAS more than budget changes.

Questions

What is the ROAS formula?

ROAS equals attributed revenue divided by ad spend. A result above one means the ads brought back more revenue than they cost, before product and service costs.

What is a good ROAS for a telehealth brand?

It depends on your costs. A good ROAS is one above your break-even ROAS, which you can work out from your price, medication, consult, pharmacy and refund costs.

Is ROAS the same as ROI?

No. ROAS uses revenue. ROI uses profit after costs. A campaign can have a high ROAS and a negative ROI when product costs are high.

Are my numbers stored?

No. The calculation runs in your browser and nothing is sent to us.