Campaign Numbers
This campaign model uses the percentage fee. Include fixed processing charges in Other Costs as a share of revenue.
Campaign Health
Positive modeled contribution
Platform ROAS
4.00x
Revenue / ad spend · 400%
True ROAS
2.60x
After the costs entered
Net Profit
$1,604.00
Revenue minus the costs entered
Cost per $1 Revenue
$0.60
Total cost to earn $1
ROI
160.4%
Return on investment from this campaign
Revenue ROAS and cost-adjusted contribution
Standard ROAS measures attributed revenue divided by advertising spend. It does not deduct product costs or establish profit. Use matching revenue and spend periods and the same attribution definition when comparing campaigns.
This tool also shows a cost-adjusted ratio labeled True ROAS: revenue minus the product, percentage payment, refund and other cost assumptions entered, divided by ad spend. A ratio above 1x leaves positive contribution after advertising in this model. Unentered overhead and fixed per-order processing charges remain outside this campaign-level calculation.
For the minimum revenue return your costs require, use the break-even ROAS calculator. Google Ads documents conversion value relative to advertising cost; choose values that match the campaign you are analyzing.
Formula and worked example
ROAS = attributed ad revenue ÷ ad spend
An illustrative campaign with $5,000 in attributed revenue and $1,000 in ad spend has a ROAS of 5x, or 500%. This measures revenue return before product and operating costs.
Frequently asked questions
How do you calculate ROAS?
Divide the revenue attributed to the campaign by its advertising spend for the same period. Multiply the ratio by 100 to express ROAS as a percentage.
Is a 2.5 or 3.8 ROAS good?
It depends on contribution margin before advertising. With a 40% pre-ad contribution margin, break-even ROAS is 1 ÷ 0.40 = 2.5x. A 3.8x result clears that modeled threshold, before any excluded costs.
What ROAS is 25% ACoS?
Advertising cost of sales is ad spend divided by attributed revenue. ACoS of 25% corresponds to 1 ÷ 0.25 = 4x ROAS, or 400%, using matching revenue and spend.
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