How to calculate ROAS (Return on Ad Spent)?

[juliaalan]

How to calculate ROAS (Return on Ad Spent)?


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[PrimeItSolution]

ROAS equals your total conversion value divided by your advertising costs. “Conversion value” measures the amount of revenue your business earns from a given conversion.

[jayam]

ROAS equals your total conversion value divided by your advertising costs. “Conversion value” measures the amount of revenue your business earns from a given conversion. If it costs you $20 in ad spend to sell one unit of a $100 product, your ROAS is 5—for each dollar you spend on advertising, you earn $5 back.

[jayammrg]

Here's how you'd calculate your ROAS:
ROAS = $20,000 / $10,000 x 100 = 200%
Break-even ROAS = 1 / Average Profit Margin %
(1) $ Average Profit Margin = $ Average Order Value - $ Average Order Costs.
(2) Average Profit Margin % = Average Profit Margin / AOV x 100.

[chandrao7]

Luckily with all the metrics FB provides, it's very easy to work out. ROAS = Total Revenue generated from your ad divided by your total ad spend. This shows us that for every $1 we spent on advertising we generated $4 back in revenue. That's a 4X ROAS