Definition
ROAS (return on ad spend) is the revenue attributed to your ads divided by what those ads cost.
Category: Paid media · Updated 1 Oct 2026 · BLITZ Campaign editorial
How do you calculate ROAS?
ROAS = revenue from ads ÷ ad spend. Break-even ROAS is roughly 1 ÷ contribution margin, where contribution is what remains after product cost, discounts, returns, fulfilment, payment fees and other variable costs. Illustration: with a 40% contribution margin, break-even is about 2.5×. Work it out with your own numbers before you set a target.
Illustrative example
You spend PKR 100,000 on Meta and it reports PKR 420,000 in sales. ROAS = 420,000 ÷ 100,000 = 4.2×.
Why can ROAS be misleading?
Platforms report the revenue they attribute to themselves, and in cash-on-delivery businesses they may count orders that are later refused. Compare platform ROAS with delivered revenue in Shopify, or use MER for the whole picture.