SwipeHarborResearch glossary
ROAS
ROAS = attributed revenue ÷ advertising cost
When a reporting source revises attributed revenue, retain the revision date with the new calculation. A later value can reflect updated attribution rather than a different cost amount or a new creative. ROAS means return on advertising cost. It compares attributed revenue with advertising cost for a defined scope. The ratio depends on both the input amounts and the method that assigns revenue to advertising. Keep that attribution method with the result.
Revenue is not profit. The ratio does not by itself account for product costs, fulfilment, returns, payment fees, or other expenses. A business decision needs the relevant cost model as well as the reported revenue ratio. Do not infer a margin from ROAS alone.
Use revenue and cost from the same reporting period and scope. Check whether the revenue value includes refunds or taxes and whether the attribution window differs from the reporting window. A change in those definitions can change the result without a change in the creative.
A zero advertising cost makes the ratio undefined for this calculation. A missing revenue value leaves the result unavailable. Do not replace missing inputs with default values to produce a number. Keep the source and any exclusions in the calculation note.
Competitor creative observations do not supply the inputs needed for this metric. An ad that appears repeatedly in a library does not establish its attributed revenue or costs. Use your own authoritative records for the arithmetic. The break-even ROAS tool addresses a separate question: the revenue ratio required by your stated contribution margin. It does not estimate a competitor result or determine whether a copied creative will produce the same outcome.
Open the related calculation tool