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Get startedROAS
Return on ad spendRevenue generated for every $1 of ad spend, on a single campaign or channel.
ROAS (return on ad spend) is the revenue an ad campaign generates divided by what it cost. A 4× ROAS means every $1 of spend returned $4 of revenue. It measures revenue efficiency, not profit — a high ROAS can still lose money if your margin is thin.
Formula
ROAS = Ad revenue ÷ Ad spend
Example: $8,000 revenue from $2,000 spend = 4× ROAS.
What a good result depends on
‘Good’ depends on your margin: compare ROAS to your break-even ROAS, not a fixed benchmark.
Common mistakes
- Treating ROAS as profit — it ignores COGS, fees and shipping.
- Trusting per-platform ROAS as truth — every platform claims the same sale.