Paid search
You spend $1,200 and the campaign brings in $5,400 in revenue.
ROAS is 4.5x.
Each dollar spent returns $4.50 in revenue.
Use this when you want a simple view of whether your ads are bringing back enough revenue for the money spent.
Inputs
Check how much revenue your ad spend brings back.
Results
Use ROAS to judge whether your ads are returning enough revenue.
Sales attributed to the ad campaign.
Revenue generated per dollar spent.
Revenue minus ad spend.
Quick take
Use this when you want a simple view of whether your ads are bringing back enough revenue for the money spent.
Revenue per ad dollar
ROAS gives you a quick health check, but it works best when you look at revenue and profit together.
Formula
ROAS formula
Examples
2-3 real scenarios to make the result easier to trust.
FAQ
Clear answers to the questions people usually ask first.
Formula
ROAS formula
ROAS = Revenue ÷ Ad spend.
A higher ROAS means more revenue per dollar of ad spend.
Examples
Paid search
You spend $1,200 and the campaign brings in $5,400 in revenue.
ROAS is 4.5x.
Each dollar spent returns $4.50 in revenue.
Small test
You spend $300 and generate $900 in revenue.
ROAS is 3.0x.
That is a solid early signal, but you still want to check profit after other costs.
Scaling spend
You spend $8,000 and bring in $20,000.
ROAS is 2.5x.
This helps you judge whether higher spend still keeps the campaign efficient.
When to use
Use it when you are comparing campaigns, channels, or creatives and want a fast revenue-to-spend ratio.
Common mistakes
FAQ
Is ROAS the same as ROI?
No. ROAS compares revenue to ad spend, while ROI compares profit to the original investment.
What is a good ROAS?
It depends on margins and overhead, but higher is generally better as long as the campaign still makes profit.
Next step
Want ad results and expenses in one place?
If you want ad spend, invoices, and expenses together, QuickBooks or Xero can make reporting much easier.
Use this alongside profit tracking, not as a replacement for it.