Definition
ROAS measures how much revenue your ads generate for every unit of currency spent. A ROAS of 3 means three dollars of revenue for every dollar of ad spend.
ROAS explained
ROAS is the most common performance metric for ecommerce advertising. It does not account for product costs, so it must be compared with your break-even ROAS to know whether a campaign is profitable. Meta reports ROAS based on its attribution settings, which can differ from your store's own records.
Formula
ROAS = revenue from ads ÷ ad spend
Example
A campaign spends 1,000 dollars and Meta attributes 4,000 dollars of purchases to it. The ROAS is 4, often written as 4x or 400%.
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