Question 1

How do I calculate ROAS?

Accepted Answer

Divide the revenue generated by an ad by the amount spent on it. ROAS of 3 means you earned $3 for every $1 spent. This free calculator computes ROAS, cost per acquisition and whether you're profitable.

Question 2

What is a good ROAS for Shopify?

Accepted Answer

It depends on your margin. A good ROAS is anything above your break-even ROAS — roughly 1 ÷ your profit margin. A 33% margin needs about 3x ROAS to break even; above that is profit, below it is a loss.

Question 3

What is the difference between ROAS and profit?

Accepted Answer

ROAS measures revenue per ad dollar; profit subtracts all costs including product and shipping. A high ROAS can still lose money if margins are thin, which is why you must compare ROAS to your break-even point.

Question 4

What is cost per acquisition (CPA)?

Accepted Answer

CPA is your ad spend divided by the number of purchases — the average cost to acquire one customer. If your CPA exceeds your profit per order, you're losing money on each sale, no matter how good the ROAS looks.

ROAS Calculator

ROAS calculator — FAQ

Stop guessing if your ads are profitable