What is ROAS (return on ad spend)?
ROAS is the revenue earned for each unit of currency spent on ads. A ROAS of 4× means every ₹1 or $1 of ad spend brought back ₹4 or $4 in revenue.
Formula
ROAS = revenue attributed to ads ÷ ad spendROAS is the most common efficiency measure in paid social and search. Each ad platform reports it from its own attribution, so Meta and Google can both claim the same order, and their ROAS figures added together can exceed what your store actually sold.
Read ROAS against your margins. A 3× ROAS is profitable for a product that keeps 60% of its revenue after variable costs and loses money for one that keeps 25%. Your break-even point comes from your contribution margin, not an industry average.
Example
Spend ₹50,000 on Meta and Meta attributes ₹2,00,000 of purchases to those ads: platform ROAS is 4×.