> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# ROAS: Return on Ad Spend

> Track your Return on Ad Spend (ROAS) with attributed revenue from Upstack's conversion tracking. Measure ad efficiency and optimize campaigns.

<Tip>
  ROAS measures how much revenue you generate for every dollar spent on advertising, using Upstack's first-party conversion tracking.
</Tip>

## Formula

<Info>
  **ROAS** = **Attributed Revenue** ÷ **Ad Spend**
</Info>

### Formula Components

| Metric                                                                  | Definition                                                     |
| ----------------------------------------------------------------------- | -------------------------------------------------------------- |
| [**Attributed Revenue**](/reference/metrics/funnel/conversions/revenue) | Total revenue from conversions attributed to your ad campaigns |
| [**Ad Spend**](/reference/metrics/advertising/blended/blended-spend)    | Total advertising spend across all connected platforms         |

| Metadata        |                         |
| --------------- | ----------------------- |
| **Type**        | Ratio                   |
| **Data Source** | [Upstack Pixel](/pixel) |
| **Aggregation** | Ratio                   |

***

## Example

Your Shopify store spent **\$10,000** on advertising last month and generated **\$45,000** in attributed revenue tracked by Upstack.

| Metric             | Value    | Calculation                       |
| ------------------ | -------- | --------------------------------- |
| Ad Spend           | \$10,000 | Total across Meta, Google, TikTok |
| Attributed Revenue | \$45,000 | Tracked conversions from ads      |
| **ROAS**           | **4.5x** | \$45,000 ÷ \$10,000               |

A ROAS of 4.5x means every dollar spent on advertising generated \$4.50 in revenue.

***

## How It Works

Upstack tracks customer journeys from ad click to purchase using first-party data. When a customer converts, the revenue is attributed to the ad campaign that drove them. ROAS divides this attributed revenue by your total ad spend to show the true efficiency of your advertising.

***

## When to Use

| Scenario                          | Action                                                              |
| --------------------------------- | ------------------------------------------------------------------- |
| Evaluating campaign efficiency    | Compare ROAS across campaigns to identify top performers            |
| Setting ad budgets                | Increase spend on campaigns with ROAS above your target threshold   |
| Measuring marketing ROI           | Track ROAS trends to understand overall advertising effectiveness   |
| Optimizing creative and targeting | Low ROAS signals a need to refresh ads or refine audience targeting |

***

## Related Metrics

| Metric                                                                          | Relationship                                            |
| ------------------------------------------------------------------------------- | ------------------------------------------------------- |
| [Attributed Revenue](/reference/metrics/funnel/conversions/revenue)             | The numerator in the ROAS calculation                   |
| Conversion Rate                                                                 | Higher conversion rates typically improve ROAS          |
| [Cost Per Acquisition](/reference/metrics/funnel/conversions/cost-per-purchase) | Inverse efficiency metric — lower CPA means higher ROAS |

[See all Conversion metrics →](/reference/metrics/funnel/conversions)