Question 1

What is a good ROAS?

Accepted Answer

It depends entirely on your margins. A product with 80% gross margin breaks even at 1.25× ROAS. A product with 30% margin needs 3.3× just to break even. Always calculate your break-even ROAS first.

Question 2

What is the difference between ROAS and ROI?

Accepted Answer

ROAS = revenue ÷ ad spend (ignores non-ad costs). ROI = (profit − investment) ÷ investment × 100% (accounts for all costs). ROAS is faster to calculate; ROI gives the full picture.

Question 3

What counts as revenue for ROAS?

Accepted Answer

Use the revenue directly attributable to the ad campaign — typically tracked via UTM parameters, pixel events, or platform-reported conversions. Be consistent between campaigns when comparing.

Ad ROAS Calculator