> ## 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 from Shopify Orders

> Track ROAS to measure how many dollars of order revenue you generate for every dollar spent on advertising. The core efficiency metric for e-commerce.

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

## Formula

<Info>
  **Return on Ad Spend** = **Total Revenue** ÷ **Total Ad Spend**
</Info>

### Formula Components

| Metric                                                                                   | Definition                                              |
| ---------------------------------------------------------------------------------------- | ------------------------------------------------------- |
| [**Total Revenue**](/reference/metrics/orders/revenue/total-revenue)                     | Complete order revenue including shipping and taxes     |
| [**Total Ad Spend**](/reference/metrics/advertising/blended/blended-spend/blended-spend) | Sum of advertising spend across all connected platforms |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Multiplier (e.g., 3.5×)     |
| **Data Source** | [Shopify](/sources/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 |

***

## Related Metrics

| Metric                                                                       | Relationship                                   |
| ---------------------------------------------------------------------------- | ---------------------------------------------- |
| [Total Revenue](/reference/metrics/orders/revenue/total-revenue)             | Numerator — total order revenue                |
| [CAC](/reference/metrics/orders/performance/cac)                             | Cost per new customer acquired                 |
| [New Customer ROAS](/reference/metrics/orders/performance/new-customer-roas) | ROAS from first-time buyers only               |
| [MER](/reference/metrics/orders/performance/mer)                             | Inverse ratio — spend as percentage of revenue |

[See all Performance metrics →](/reference/metrics/orders/performance)