ROAS: Return on Ad Spend
Revenue generated for every dollar spent on advertising. Calculated as revenue divided by ad spend.
Formula
Why it matters
ROAS is the primary efficiency metric for paid advertising. It tells you how many dollars of revenue each dollar of ad spend produces — making it the clearest signal for scaling or pausing a campaign.
How to improve ROAS
Improve targeting to reduce irrelevant clicks, refresh fatiguing creatives, raise bids on high-converting audiences, and exclude non-converting audience segments.
Varies by industry. E-commerce typically targets 3–5×. B2B SaaS often targets 2–4×.
Prooflytics tracks ROAS automatically from your connected sources and flags it in your daily briefing when it moves significantly.
Start free trialROAS calculator
Calculate ROAS from revenue and spend
ROAS
ROAS = Revenue ÷ Ad Spend
—
How much spend do I need to hit my ROAS target?
Max ad spend
Max Spend = Revenue ÷ Target ROAS
—
Frequently asked questions
What is a good ROAS?
A good ROAS depends on your business model and margins. E-commerce brands typically target 3–5× (meaning $3–5 revenue per $1 spend). High-margin SaaS businesses can operate profitably at 2–3×. Below 1× means you are losing money on every dollar spent.
What is the difference between ROAS and ROI?
ROAS measures revenue against ad spend only. ROI (Return on Investment) measures profit against total investment — including product cost, fulfilment, and overhead. ROAS is useful for optimising individual campaigns; ROI tells you if the business is actually profitable.
What is blended ROAS?
Blended ROAS calculates total revenue divided by total paid media spend across all channels — not per platform. It is more accurate than per-platform ROAS because it avoids double-counting attributed conversions across Meta and Google.