4.00x is the example result. ROAS reports revenue per unit of advertising spend. It does not subtract product costs, fulfilment or overhead and should not be called profit.
Return on ad spend (ROAS) divides revenue attributed to advertising by ad spend. The output is a revenue multiple. Use it to compare campaigns with consistent attribution and revenue definitions.
Set the attribution boundary
Choose the reporting window and the method used to credit revenue to advertising. Apply the same treatment of refunds, cancellations and revenue across campaigns. Several platforms may claim the same sale, so adding their attributed revenue together can overstate what the business received.
Revenue efficiency is not profit
A revenue multiple does not subtract fulfilment, product, staff or platform costs. Review the margin available after variable costs before increasing spend. A campaign can produce an attractive ROAS while leaving too little contribution to support the wider business.
Evaluate changes beyond the headline ratio
Compare acquisition cost, order value and customer quality alongside ROAS. A change in product mix or attribution can move the multiple without improving campaign execution. Zero ad spend makes the ratio undefined; use a consistent currency for both inputs.
Example with the supplied inputs
Revenue attributed to ads: 10000; Ad spend: 2500. Result: 4.00x. The values are illustrative.
Compare one changed input
Revenue attributed to ads changes from 10000 to 11000. The result becomes 4.40x. All other inputs remain fixed.
Calculation rule
Result = (([Revenue attributed to ads]) ÷ ([Ad spend]))
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Revenue attributed to ads | 10000 | Use revenue attributed to ads on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Ad spend | 2500 | Use ad spend on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
Output: 4.00x is the example result. ROAS reports revenue per unit of advertising spend. It does not subtract product costs, fulfilment or overhead and should not be called profit. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Revenue attributed to ads, Ad spend. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Revenue attributed to ads on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 4.00x.
Change Revenue attributed to ads from 10000 to 11000 while keeping every other value fixed. The result becomes 4.40x. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.