ROAS measures how much attributed revenue advertising generated relative to ad spend. The basic formula is simple, but using it well requires understanding what revenue is included and how the result relates to profit.
The basic ROAS formula
$6,000 revenue ÷ $2,000 ad spend = 3.0x ROAS.
You can check any campaign instantly with the free ROAS Calculator.
ROAS percentage vs ROAS multiple
A 3.0x ROAS is the same as 300% revenue return on ad spend. The multiple is common in ecommerce dashboards, while percentage format may appear in reporting or bidding interfaces.
Example: ecommerce campaign
Suppose a store spends $4,000 and attributes $14,000 in sales. ROAS is 3.5x. Whether that is profitable depends on contribution margin. Compare the result with your break-even ROAS rather than judging 3.5x in isolation.
Example: two campaigns with different AOV
Campaign A may have a higher CPA but also a higher average order value. ROAS captures revenue efficiency, while CPA captures acquisition cost. Our ROAS vs CPA guide shows when each metric is more useful.
Revenue is not profit
ROAS does not subtract COGS, shipping, payment fees or returns. To understand whether the revenue is economically attractive, calculate margin with the Profit Margin Calculator and compare ROAS to break-even.
Turn the guide into your own numbers
Use your real costs and campaign data instead of relying on a generic benchmark.
Calculate break-even ROASFrequently asked questions
What does 4x ROAS mean?
It means the campaign generated $4 in attributed revenue for every $1 spent on advertising.
What is 500% ROAS as a multiple?
500% ROAS is 5.0x.
Does ROAS include profit?
No. Standard ROAS compares attributed revenue with ad spend and does not subtract other business costs.