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Advertising

ROAS

Return on ad spend

Revenue 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.
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Break-even ROAS Calculator
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Show ROAS by campaign for the last 30 days.

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