The metric
What is ROAS?
ROAS means return on ad spend. It tells you how much attributed revenue an advertising campaign generated for each dollar spent. A 4× ROAS means the campaign produced $4 in attributed revenue for every $1 of ad spend.
The formula
How to calculate ROAS
To calculate ROAS as a percentage, multiply the result by 100. For example, $5,000 in attributed revenue divided by $1,200 in ad spend equals 4.17×, or 416.67%.
The profit floor
How to calculate break-even ROAS
Basic ROAS does not include product and fulfillment costs. Break-even ROAS adds those costs to show the minimum return required for an order to cover its advertising cost.
Selling price − non-ad costsSelling price ÷ maximum CPAIf an order sells for $100 and its non-ad costs total $52, up to $48 remains for acquisition. The maximum CPA is $48 and the break-even ROAS is 100 ÷ 48 = 2.08×.
How to use it
Read the two results together
- 1
Enter campaign ad spend and the revenue attributed to that spend.
- 2
Enter the selling price and every variable cost attached to one order.
- 3
Compare the measured ROAS with the break-even ROAS for the same offer and cost basis.
Questions
ROAS calculator FAQ
What does a 3× ROAS mean?
It means the ads generated $3 in attributed revenue for every $1 spent on advertising.
Is ROAS the same as profit?
No. ROAS compares attributed revenue with ad spend. Profit also accounts for product, fulfillment, transaction, operating, and other relevant costs.
What should count as ad revenue?
Use revenue attributed to the same campaign, channel, and time period as the ad spend. Keep the attribution method consistent when comparing results.
Can this return on ad spend calculator find a target ROAS?
Yes. Enter the economics of one order to calculate the break-even target: the minimum ROAS at which the order can cover its variable costs and acquisition cost.
Why calculate ROAS as both a multiple and a percentage?
They express the same result. A 4× ROAS is 400%. Ad platforms and reports may use either format.