ROAS formula
ROAS = revenue attributed to ads ÷ ad spend.
If a campaign generates $8,000 in attributed revenue from $2,000 of advertising spend, its ROAS is 4.0x. The same result can be written as a 4:1 ratio or 400%.
What to include in the calculation
Revenue should use one consistent attribution source and time window. Ad spend should include the media cost for the same campaigns and dates. If you add agency fees, creative production, or software costs, label the result clearly because it is no longer directly comparable with platform-reported ROAS.
ROAS is not the same as profit
ROAS measures revenue efficiency, not net profit. Product costs, fulfillment, payment fees, discounts, returns, taxes, and overhead can turn a strong-looking ROAS into a loss. Use the break-even ROAS calculator to build those store economics into your minimum target.
How to interpret your result
There is no universal “good ROAS.” A campaign is more useful when its actual ROAS is compared with the break-even threshold for the same products, markets, and period. Attribution settings also differ across ad platforms, so compare like with like and verify performance against your analytics or order data.
Learn the calculation in detail
Read the ROAS formula guide for definitions, common mistakes, ROAS versus ROI, and a worked example. Your entries in this calculator are processed in the browser and are not submitted to BEROAS.