ROAS (Return On Ad Spend)

ROAS (Return On Ad Spend) is revenue divided by ad spend. Unlike ROI, ROAS does not subtract cost — it shows the gross return of advertising.

The ROAS formula

ROAS = revenue / ad spend. For example, $2000 revenue at $1000 ad spend — ROAS 2.0 (or 200%). ROAS 1.0 means ads returned exactly what was put in.

ROAS vs ROI

ROAS is handy for a quick ad read but ignores domains, service and fees. For real funnel profitability use ROI, with ROAS as an operational guide.

FAQ

Is ROAS 1.0 a profit?
No, it is ad break-even: revenue equals ad spend. With other costs included it is still a loss.
When is ROAS handier than ROI?
ROAS for a quick ad read, ROI for final funnel profitability including all costs.
Why does ROAS look better than ROI?
Because it does not subtract cost. The same result looks more favorable by ROAS than by ROI.
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