ROAS: Return on Ad Spend from Shopify Orders

ROAS (Return on Ad Spend) measures how many dollars of order revenue you generate for every dollar spent on advertising.

Formula

Return on Ad Spend = Total Revenue ÷ Total Ad Spend

Formula Components

Metric	Definition
Total Revenue	Complete order revenue including shipping and taxes
Total Ad Spend	Sum of advertising spend across all connected platforms

Metadata
Type	Multiplier (e.g., 3.5×)
Data Source	Shopify
Aggregation	Ratio

Example

Your store spent $25,000 on advertising last month and generated $87,500 in order revenue:

Metric	Value
Total Revenue	$87,500
Total Ad Spend	$25,000
ROAS	3.5×

A ROAS of 3.5× means you generated $3.50 in revenue for every $1 spent on ads.

How It Works

ROAS divides your total Shopify order revenue by your total advertising spend. A ROAS of 3× means every advertising dollar returns $3 in revenue. This metric helps you evaluate whether your ad spend is profitable and compare efficiency across campaigns and time periods.

When to Use

Scenario	Action
Evaluating ad efficiency	Compare ROAS against your break-even threshold
Setting budget targets	Use ROAS to determine sustainable spend levels
Campaign comparisons	Identify which campaigns deliver the best return
Profitability analysis	Combine with margin data to assess true ad profitability

Metric	Relationship
Total Revenue	Numerator — total order revenue
CAC	Cost per new customer acquired
New Customer ROAS	ROAS from first-time buyers only
MER	Inverse ratio — spend as percentage of revenue

See all Performance metrics →

CAC New Customer ROAS

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​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics