YOUR ROAS
ROAS
Attributed ad revenue ÷ ad spend. This is revenue efficiency — not profit.
YEB · Advertising economics
See how much attributed ad revenue you generate for every unit of ad spend. Then add margin, new customers and LTV to understand what ROAS does — and does not — tell you.
QUICK ROAS
The advertising cost used in the ROAS denominator.
Do not mix total business revenue with ad spend unless that is intentionally your measurement scope.
YOUR ROAS
Attributed ad revenue ÷ ad spend. This is revenue efficiency — not profit.
WHAT THE NUMBER MEANS
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WHAT THE NUMBER MEANS
These metrics answer different questions. Use the live values below to see the formulas with your own inputs.
Attributed revenue ÷ ad spend = ROASROAS × 100 = ROAS %Attributed revenue × gross marginNot company profit. Overhead, payroll, taxes, fees, returns and other costs can still matter.
Attributed gross profit − ad spendNot company profit. Overhead, payroll, taxes, fees, returns and other costs can still matter.
1 ÷ gross margin rate = simplified break-even ROASSimplified gross-margin break-even only. It assumes gross margin captures direct costs and ignores other operating costs.
Ad spend ÷ new customers = Media CACLTV ÷ CAC = LTV:CACDECISION MODE
Change attributed revenue, ad spend or AOV and watch ROAS move instantly. Combined changes compound.
ROAS IS ONLY ONE LAYER
ROAS tells you how much attributed revenue ads produce. CAC tells you what a new customer costs. LTV tells you what that customer may be worth over time. Read them together.
Use CAC when customer count matters more than revenue attribution.
Calculate CAC ↗Use LTV to understand whether acquired customers create enough lifetime value.
Calculate LTV ↗YOUR ROAS
Attributed ad revenue ÷ ad spend. This is revenue efficiency — not profit.
FROM METRIC TO DECISION
If you need help connecting ad efficiency to margin, CAC, customer quality and LTV, diagnose the economics rather than optimizing one metric in isolation.
Bring your spend, attributed revenue, margin, CAC and LTV. Turn the numbers into priorities.
Get the detailed plan ↗↗Customer fit, offer, message, creative and experience can all affect acquisition efficiency and lifetime economics.
Diagnose the broader system ↗↗