How to calculate ROAS: the return on ad spend
Short answer: ROAS is attributed revenue divided by ad spend. 35,000 in attributed revenue on 10,000 of spend is a ROAS of 3.5.
The formula
ROAS = attributed revenue ÷ ad spend
Choose the right data
- Spend: Use the platform's reported spend, in the same currency.
- Revenue: Count only attributed purchases; exclude organic revenue.
- Period: Spend and revenue must come from the same date range.
Read it carefully
ROAS is not a profit measure. A high ROAS can mislead if product cost and refunds are ignored. If campaign names differ between sources, revenue shows as zero, so keep names consistent.