Worked examples
Solid paid campaign
| Ad-attributed revenue | $4,000.00 |
| Ad spend | $1,000.00 |
| ROAS | 4.00× |
| Equivalent ACOS | 25.0% |
| Revenue per $1 of ads | $4.00 |
A 4× ROAS (25% ACOS) — comfortably profitable for most 40%+ margin products.
Campaign near the line
| Ad-attributed revenue | $5,400.00 |
| Ad spend | $1,800.00 |
| ROAS | 3.00× |
| Equivalent ACOS | 33.3% |
| Revenue per $1 of ads | $3.00 |
A 3× ROAS — break-even for a 33% margin product before any overhead.
Frequently asked questions
What is a good ROAS for e-commerce?
Most stores need at least 3–4× to make paid traffic profitable, but the honest answer depends on margin: your break-even ROAS is 1 ÷ gross margin. A 50% margin product breaks even at 2×, a 25% margin product needs 4× just to tread water. Compare campaigns against your own break-even, not an industry average.
Is ROAS the same as ROI?
No. ROAS divides revenue by ad spend and ignores product costs entirely; ROI divides profit by total investment. A campaign can post an impressive 5× ROAS and a negative ROI if margins are thin. Use ROAS to compare campaigns against each other and ROI (or profit per sale) to decide whether paid ads are worth running at all.
Should I measure ROAS per campaign or account-wide?
Both, for different jobs. Campaign-level ROAS tells you where to shift budget; account-level (blended) ROAS tells you whether advertising as a whole pays. Watch for branded-search campaigns inflating the blend — they often harvest sales that would have arrived organically, making the account look healthier than the cold-traffic campaigns really are.
Why does my platform report a different ROAS than my bank account suggests?
Attribution. Ad platforms claim credit for any sale a user makes within their attribution window, and windows overlap across channels — Meta and Google can both claim the same order. Platform ROAS is usually optimistic. Cross-check against blended math: total revenue ÷ total ad spend across everything.
Related calculators
Part of the Advertising & ROAS collection.