What is ROAS (Return on Ad Spend)?

ROAS divides revenue attributed to a campaign by the campaign’s cost. A 3× ROAS means every $1 of ad spend produced $3 of revenue. ROAS alone says nothing about profit — a campaign can have a positive ROAS and still lose money if it is below the break-even ROAS implied by your gross margin.

Formula

Example

A campaign spends $2,000 and generates $5,600 in attributed revenue. ROAS = $5,600 ÷ $2,000 = 2.8×.

Calculate it free

• Break-Even ROAS Calculator →

Related terms

• Break-Even ROAS — The minimum return on ad spend needed to cover the cost of running an ad campaign.
• Customer Acquisition Cost (CAC) — The total cost to acquire one new paying customer.