Quick answer
ROAS quick answer
Answer: Return on ad spend measures attributed revenue generated for each dollar of advertising spend.
Formula: ROAS = attributed revenue ÷ ad spend.
Example: $5,000 of attributed revenue from $1,500 of ad spend equals a 3.33× ROAS.
Reviewed September 1, 2026 · Methodology
Worked example
$5,000 in attributed revenue from $1,500 in ad spend is a 3.33× ROAS.
What to do with the result
ROAS is not profit. Compare it with your break-even ROAS after product, shipping, fee and fulfillment costs.
Frequently asked questions
What does 3x ROAS mean?
It means three dollars of attributed revenue for each dollar of advertising spend.
Is higher ROAS always better?
Not automatically. Profit, volume, margin and attribution quality also matter.
NEXT DECISION
Take this number one step further
Use the result as an input to a decision model that compares the next action rather than stopping at the calculation.