How much revenue each dollar of ad spend brought back. Use the same currency for every field.
ROAS
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ACOS
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Profit after ads
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ROAS = revenue ÷ spend. ACOS = spend ÷ revenue. Profit after ads = revenue × margin − spend.
The ROAS at which your ads exactly pay for themselves. Enter your unit economics, or just your margin.
Or skip the above and enter your margin
Margin
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Break-even ROAS
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Break-even CPA
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Margin = (order value − product − shipping − fees) ÷ order value. Break-even ROAS = 1 ÷ margin. Break-even CPA = order value × margin.
The ROAS you need to keep a chosen profit margin after paying for ads.
Target ROAS
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Break-even ROAS
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Revenue needed
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Target ROAS = 1 ÷ (margin − desired profit). Both as a share of revenue. Revenue needed = planned spend × target ROAS.
What the business actually took in for everything it spent on ads — next to what the platforms claim. Use the same date range for every number.
From your store
Blended ROAS (MER)
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Platforms claim
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Over-reporting
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Blended ROAS = total store revenue ÷ total ad spend. Platforms claim = sum of platform-reported revenue ÷ total ad spend. Store revenue includes organic and repeat sales, so treat blended ROAS as a ceiling on what ads drove.
1. How to calculate ROAS
ROAS — return on ad spend — tells you how much revenue each dollar of advertising brought back:
If a campaign spent $2,000 and drove $8,000 in revenue, ROAS is 8,000 ÷ 2,000 = 4.0. You'll see it written as 4.0, 4x, 4:1 or 400% — they all mean the same thing.
Three related numbers come up constantly, and it helps to keep them straight:
| Metric | Formula | What it tells you |
|---|---|---|
| ROAS | Ad revenue ÷ ad spend | Revenue per dollar of ads |
| ACOS | Ad spend ÷ ad revenue | The share of revenue that went on ads; the inverse of ROAS |
| MER / blended ROAS | Total store revenue ÷ total ad spend | Efficiency of all marketing spend against what the business actually took in |
| ROI | (Profit − cost) ÷ cost | Whether it made money once every cost is counted |
The catch: ROAS is calculated on revenue, not profit. A 3x ROAS on a product with a 70% margin is very profitable; on a product with a 25% margin it loses money on every sale. That's why the next question matters more.
2. What is a good ROAS?
There is no universal good ROAS, and we deliberately don't quote "industry average" figures — the ones in circulation rarely say where they came from, and an average across businesses with different margins tells you nothing about yours.
What does tell you is your break-even ROAS: the ROAS at which ads exactly pay for themselves.
Margin here means what's left of an order after product cost, shipping, fulfilment and payment fees — not the markup on the product. Here's what that works out to:
| Margin after costs | Break-even ROAS | ROAS to keep a 10% profit |
|---|---|---|
| 20% | 5.00x | 10.00x |
| 25% | 4.00x | 6.67x |
| 30% | 3.33x | 5.00x |
| 40% | 2.50x | 3.33x |
| 50% | 2.00x | 2.50x |
| 60% | 1.67x | 2.00x |
| 70% | 1.43x | 1.67x |
So a good ROAS is one comfortably above your break-even — far enough to cover the fixed costs ads don't account for and leave the profit you want. The Target ROAS tab above does that sum for you.
Two adjustments worth making:
- Prospecting can run below target if new customers come back. A first order at break-even can be fine when repeat purchases carry the profit — as long as you know your repeat rate rather than assume it.
- Retargeting and brand search should run well above it. Many of those buyers would have purchased anyway, so their ROAS flatters the ads.
3. Platform ROAS vs real ROAS
Add up the revenue Meta and Google each report and you'll usually get more than your store actually took in. That isn't a bug. Each platform counts conversions with its own attribution rules, and both can claim credit for the same order — someone clicks a Meta ad on Monday, searches your brand on Google on Thursday, and buys. Each platform may count that sale.
That's why the Blended ROAS tab compares the two:
- Platform ROAS is useful for comparing campaigns and ads within one platform.
- Blended ROAS (store revenue ÷ total ad spend) tells you whether the whole ad budget is working. Because store revenue also includes organic and repeat sales, treat it as an upper bound on what ads drove.
- The gap between them shows how much the platforms are over-claiming. If it suddenly widens, something has changed in tracking or attribution.
To make this a habit rather than a monthly spreadsheet, the cross-channel spend reconciliation workflow pulls spend across Meta and Google and projects the month end.
4. How to improve ROAS
ROAS improves in one of two ways: more revenue from the same spend, or the same revenue from less. In practice, the levers are:
- Cut wasted spend — search terms, placements and audiences that spend without converting. See tools for finding wasted ad spend.
- Refresh fatiguing creative before rising frequency drags conversion rate down. See how to spot creative fatigue.
- Move budget from saturating campaigns to ones with room to grow.
- Raise order value with bundles and offers — it lifts ROAS without touching the ads.
- Fix the landing page when ads get clicks but not sales.
If ROAS has dropped and you don't know why, start with why Meta ads ROAS drops.
5. How GoMarble helps
A calculator answers the question once. GoMarble keeps answering it:
| What you need | How GoMarble does it |
|---|---|
| ROAS from real revenue | Connects Meta, Google, TikTok, LinkedIn and Microsoft Ads alongside Shopify, so platform claims sit next to store revenue |
| Your break-even, remembered | Brand IQ keeps your goals and guardrails — like a CPA ceiling — so agents judge performance against your numbers, not a generic benchmark |
| Knowing when ROAS moves | A daily brief flags ROAS and spend changes across channels each morning |
| Knowing why | Agents trace a drop to the campaign, audience, creative or landing page responsible and propose a fix for your approval |
FAQ
How do you calculate ROAS?
What is a good ROAS?
What is break-even ROAS?
What is the difference between ROAS and ROI?
What is ACOS?
What is blended ROAS or MER?
Why is my blended ROAS lower than Meta and Google report?
Is ROAS calculated on revenue or profit?
See your real ROAS, every morning.
Connect your ad accounts and store, and GoMarble AI Agents track ROAS across channels, flag when it moves and explain why.