Calculate Your ROAS
What Is ROAS?
ROAS stands for Return on Ad Spend. It measures how much revenue your advertising generates for every unit spent on ads.
Example
If your ads generate PKR 100,000 in revenue and you spend PKR 25,000 on advertising:
100,000 ÷ 25,000 = 4.00x ROAS
This means you generated PKR 4 in attributed revenue for every PKR 1 spent on advertising.
ROAS vs Profit
A high ROAS does not automatically mean your business is profitable. Product cost, shipping, returns, payment fees and other expenses also affect actual profit.
Use our Shopify Profit Calculator to estimate net profit after major costs.
Frequently Asked Questions
There is no single good ROAS for every business. Your break-even ROAS depends on your margins and other costs.
Yes. A ROAS of 0.80x means you generated 0.80 in revenue for every 1.00 spent on ads.
No. ROAS measures advertising efficiency, while profit considers your other business expenses too.