Revenue efficiency
ROAS does not subtract product costs.
ROAS is attributed revenue divided by ad spend. It is useful for media efficiency, but it is not the same as profit or total return on investment.
Compare ROAS and ROIFree · no sign-up · transparent formulas
Calculate attributed revenue per ad dollar, plan a target, and add your margin when you need a contribution break-even check—not a generic benchmark.
01 · Inputs
Use one currency, reporting period, conversion event, attribution window, and attribution model. Currency selection changes formatting only; it does not convert values.
How to use it
Use ad spend and attributed revenue from the same dates, currency, conversion event, window, and attribution model.
A 4.00× result means the platform attributed four units of revenue for each unit of media spend.
Enter contribution margin or detailed variable cost rates to compare the result with contribution break-even.
Revenue efficiency
ROAS is attributed revenue divided by ad spend. It is useful for media efficiency, but it is not the same as profit or total return on investment.
Compare ROAS and ROIProfit threshold
Break-even ROAS is one divided by contribution margin before ads. A lower margin requires more attributed revenue for each ad dollar.
Open the break-even calculatorThe better question
There is no universal threshold. A useful ROAS is one that clears the cost boundary relevant to your decision.
A campaign at 3.00× can be below break-even with a 20% margin, while 2.00× can clear break-even with a 60% margin. That is why this calculator keeps the margin check separate and optional.
Method basis: Amazon Ads Math. Examples are arithmetic illustrations, not benchmarks or forecasts.
FAQ
Divide revenue attributed to advertising by ad spend. If attributed revenue is $8,000 and spend is $2,000, ROAS is 4.00×, or 400%.
It means the reporting system attributed four units of revenue to ads for each one unit of media spend. It does not mean four units of profit because product, fulfilment, fees, refunds, salaries, tax, and other costs may still apply.
Not by itself. At a 40% contribution margin, 2.50× is contribution break-even before fixed and unentered costs. At a different margin, the threshold changes.
No. ROAS compares attributed revenue with ad spend. ROI is profit-based and depends on the full cost boundary included in the investment. See the ROAS vs ROI comparison.
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