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ROAS Calculator: Return on Ad Spend for E-commerce
ROAS (return on ad spend) shows how much revenue each dollar of advertising brings back. A ROAS of 4x means $4 in revenue for every $1 spent. On its own it says nothing about profit, so this calculator also compares it with your break-even ROAS.
The formula
ROAS = revenue from ads ÷ ad spend
How to use this calculator
- Enter the revenue attributed to your ads for a period.
- Enter what you spent on those ads in the same period.
- Add your contribution margin before ads to see if the campaign actually made money.
Want the full picture? Read the guide: Break-Even ROAS: The Number That Decides If Your Ads Make Money.
Frequently asked questions
What is a good ROAS for a Shopify store?
It depends on your margin. A store with a 50% contribution margin breaks even at 2x, so 3x is good. A store with a 25% margin needs 4x just to break even. Always judge ROAS against your own break-even.
Is ROAS the same as ROI?
No. ROAS uses revenue, ROI uses profit. A 3x ROAS can be a negative ROI if product, shipping and fees eat more than two thirds of the revenue.
How do I calculate ROAS as a percentage?
Multiply ROAS by 100. A ROAS of 3.5x is 350%.
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