Return on Ad Spend (ROAS)

ROAS is revenue divided by advertising spend — a 3.0 ROAS means $3 back for every $1 spent. On its own it says nothing about profit: whether a given ROAS is healthy depends entirely on your gross margin. That is why you calculate your break-even ROAS first — the return you must clear just to avoid losing money on a sale. Find yours with the break-even ROAS calculator.