How the calculation works
ROAS = Revenue attributed to ads ÷ Ad spend
Worked example
If ads cost $500 and generate $2,000 in attributed revenue, ROAS is 4.00x.
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ROAS
4x
Revenue divided by ad spend. Profitability still depends on margin and other costs.
Frequently asked questions
What does a 4x ROAS mean?
A 4x ROAS means the tracked campaign generated $4 in attributed revenue for every $1 spent on advertising. It does not by itself show profit.
Is higher ROAS always better?
Higher is generally more efficient, but the right target depends on gross margin, repeat purchases, refunds, overhead, and attribution quality.
Does ROAS include product cost?
No. Basic ROAS compares attributed revenue with ad spend. Use margin and profit calculations before deciding whether a campaign is truly profitable.
Related free tools
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