Ads guide

What is ROAS and how to calculate it

Calculate attributed revenue per ad dollar, find a margin-based break-even point, and test the assumptions.

Return on ad spend (ROAS) is a revenue efficiency measure: it compares revenue attributed to advertising with the cost of that advertising. It is useful for judging campaigns, but it is not the same as profit. A high-looking ROAS can still lose money when margins are thin or attribution is overly generous.