Formula
Return on Ad Spend = Total Revenue ÷ Total Ad Spend
Formula Components
Example
Your store spent $25,000 on advertising last month and generated $87,500 in order revenue:
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
Related Metrics
See all Performance metrics →