What is Return on Ad Sales (ROAS)?

ROAS reflects how many sales were driving by advertising. Usually, you would measure the ROAS for a specific advertising campaign. ROAS is either reflected as a percentage (“We saw a ROAS of 400%”) or as a multiplier (“We saw a ROAS of 4X”).

How to calculate ROAS

To calculate ROAS, you will need to know the following:

1. Sales: How much you sold, thanks to advertising
2. Spend: How much you spent on advertising.

Let’s say Jay spent $15,000 on advertising, and had $55,000 in sales:

You then calculate it as follows:

ROAS = Sales ÷ Spend
ROAS = $55,000 ÷ $15,000
ROAS = 3.67X