Marketing
How do you calculate ROAS from ad spend?
Return on ad spend and ROI percentage.
Quick answer
ROAS = revenue ÷ ad spend. €4,200 revenue on €1,000 spend: 4,200 ÷ 1,000 = 4.2×. ROI % = (ROAS − 1) × 100: 4.2× means 320% ROI on ad spend alone.
ROAS
4.2×
- ROI
- 320 %
- Gross profit
- $3,200.00
How it works
ROAS ignores product margins. A 4× ROAS on 20% margin products is profitable; on 15% margin it may break even after COGS. Subtract cost of goods before declaring a winner.
Frequently asked questions
Break-even ROAS?+
Break-even ROAS = 1 ÷ profit margin. 25% margin needs ROAS ≥ 4×.
ROAS vs ROI?+
ROAS compares revenue to ad spend only. ROI compares net profit to total investment.
Optimise for ROAS or conversions?+
ROAS when prices vary; conversion volume when all sales are equal value.
Why does platform ROAS differ from shop analytics?+
Attribution windows, cross-device gaps, refunds not subtracted. Trust your bank account over dashboards.
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