Revenue per dollar of advertising.
A worked example
Starting figures
- Ad spend
- $12,000
- Revenue attributed
- $48,000
- Gross margin
- 55%
What it returns
- ROAS
- 4.00x
- Profit after ad spend
- $14,400
- Break-even ROAS
- 1.82x
How to read the results
With the defaults above, roas works out at 4.00x.