Divide store revenue by ad spend to get ROAS, and compare it against your margin break-even.
The ratio divides one figure by the other and is read against a conventional benchmark of 4. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number. A advertising return compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
Ecommerce ROAS
Return on Ad Spend = Revenue attributed to ads ÷ Ad spend
Return on Ad Spend = Revenue attributed to ads ÷ Ad spend The ratio divides one figure by the other and is read against a conventional benchmark of 4. Both the ratio and its percentage form are shown, because different audiences expect different presentations of the same number.
A advertising return compresses two absolute figures into one comparable number, which is what makes it usable across companies and periods of different size.
This calculator takes 2 inputs: Revenue attributed to ads, Ad spend. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.