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ROAS calculator

ROAS is the revenue your ads brought for each dollar spent. Enter ad spend and the revenue from those ads; add purchases to see cost per purchase and average order value.

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ROAS

3.5x

Cost per purchase
$14.29
Average order value
$50.00

How it's calculated

ROAS
= ad revenue ÷ ad spend

Example

$2,000 of ads brought $7,000 of sales. ROAS = 7,000 ÷ 2,000 = 3.5 (often written 3.5x or 350%).

ROAS is not profit

A 3x ROAS can lose money if the products cost a lot, and a 1.8x ROAS can be profitable on a high-margin product. Compare your ROAS with your break-even ROAS, which depends on your margin after product, shipping and fees.

FAQ

How do I calculate ROAS?

Divide the revenue from ads by the ad spend. $7,000 ÷ $2,000 = 3.5.

What's a good ROAS?

Any ROAS above your break-even ROAS. With a 40% margin before ads, break-even is 2.5; with 25% it's 4.

Is ROAS the same as ROI?

No. ROAS uses revenue; ROI uses profit. ROAS ignores what the products and fees cost.

What's MER?

Marketing efficiency ratio: total store revenue ÷ total marketing spend, across every channel. It's less sensitive to how each platform attributes sales.

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