What is ROAS?

ROAS stands for Return on Ad Spend.

ROAS is the revenue earned for every dollar spent on ads: ad sales ÷ ad spend. It is the inverse of ACoS.

Example

$1,000 in ad sales from $250 of spend is a ROAS of 4 (often written 4× or 400%).

Why it matters

Google, Meta, Walmart and TikTok usually report ROAS, while Amazon reports ACoS. ROAS = 100 ÷ ACoS.

Calculate it: ACoS & ROAS Calculator

ACoS, ROAS and TACoS from ad results

Question

What is ROAS (Return on Ad Spend)?

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Answer

ROAS is the revenue earned for every dollar spent on ads: ad sales ÷ ad spend. It is the inverse of ACoS.

ACoS

ACoS is the share of ad-driven sales spent on advertising: ad spend ÷ ad sales × 100. It is the main efficiency metric in Amazon Sponsored Products.

Break-even ACoS

Break-even ACoS is the highest ACoS you can run without losing money. It equals your profit margin before advertising.