Formula and example
How it is calculated
ROAS = revenue / advertising spend; result = revenue × contribution margin − advertising spend
Worked example
€15,000 revenue and €3,000 advertising spend give a ROAS of 5. With a 40% contribution margin, €3,000 remains after advertising.
Things to check
- ROAS alone does not establish profit. Revenue attribution depends on your measurement method; other fixed costs are excluded.
- Use one currency consistently. Examples use euros; the calculation works with any currency.