How it works
ROAS is revenue divided by ad spend. A ROAS of 4.00x, also written 400%, means each $1 of ads brought back $4 of revenue. The ratio and the percent are the same number.
ROAS = revenue ÷ spend
ROAS % = revenue × 100 ÷ spend
revenue = ROAS × spend
spend = revenue ÷ ROAS
Worked example
Your ads bring in $2,000.00 of revenue on $500.00 of ad spend.
- 1ROAS$2,000.00 ÷ $500.00 = 4.00x
- 2ROAS as a percent$2,000.00 × 100 ÷ $500.00 = 400.00%
What is a good ROAS?
Benchmarks vary by industry and platform, so this page gives no number. Above 1.00x the ads brought in more revenue than they cost, but whether that pays depends on your margin.