ROAS Calculator for Hotels
Measure whether your Google, Meta or OTA ads are really profitable by comparing return on ad spend with the break-even ROAS for your margin.
How to use the free ROAS Calculator for Hotels
- Enter your figures in the fields above – use real numbers from your PMS, channel manager or accounts.
- Tap the button to see the result instantly. Change any value to compare scenarios.
- Copy, print or save the result and use it in your daily or monthly review.
This ROAS Calculator for Hotels runs fully in your browser on mobile or desktop – no sign-up and nothing is uploaded. Free ROAS calculator for hotels. Enter ad spend, bookings and margin to get return on ad spend, ROI, cost per booking and your break-even ROAS.
ROAS, ROI and break-even ROAS
Return on ad spend (ROAS) tells you how much revenue each rupee of advertising brought in. If you spent ₹50,000 on ads and the bookings they produced were worth ₹3,20,000, your ROAS is 6.4x. ROAS is simple, but it looks at revenue only. A hotel does not keep all of its revenue: housekeeping, laundry, amenities, breakfast, utilities and payment charges eat into every booking.
That is why this calculator also asks for your profit margin. Break-even ROAS is the ROAS at which the profit from ad bookings just pays for the ads.
Example
Ad spend ₹50,000 produced 40 bookings with an average value of ₹8,000, so revenue is ₹3,20,000 and ROAS is 6.4x. With a 30% margin, profit from those bookings is ₹96,000. After paying for the ads, ₹46,000 is left, an ROI of 92%. Break-even ROAS at a 30% margin is 3.33x, so this campaign is well above it.
Reading your result
- Below break-even: the campaign loses money. Pause weak keywords or audiences, improve the landing page, or check whether bookings are being tracked correctly.
- Just above break-even: profitable but fragile. A rise in click prices could tip it into loss.
- Well above break-even: a candidate for a careful budget increase, while you watch whether ROAS holds.
Use real booking revenue net of cancellations where you can. Platform-reported conversion values can include bookings that were later cancelled or would have come direct anyway, so cross-check with your PMS. Plan new campaigns with the cost per acquisition calculator and check paid OTA visibility programmes with the OTA promotion ROI calculator. Margins differ by property and season, so treat the result as an estimate.
Frequently asked questions
What is a good ROAS for a hotel?
There is no single good number. A campaign is profitable when ROAS is above your break-even ROAS, which is 1 divided by your profit margin. At a 30% margin, break-even ROAS is about 3.33x.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend. ROI compares profit after ad cost with ad spend, so it accounts for the cost of serving the guest.
Should I use revenue before or after GST?
Use revenue before GST, because GST is collected for the government and is not your income. Also remove cancelled bookings where possible.
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