AdZoom Coming soon to the Shopify App Store

ROAS calculator for Shopify stores

Work out your ROAS from what you spent on ads and the revenue they brought in, or find the revenue a target ROAS needs. ROAS says what your ads sold. It doesn't say what you kept.

Example: one month of a Shopify store's ads
Revenue from those ads$3,000
Divided by ad spend$1,000
ROAS3.0

Every dollar of ad spend brought in three dollars of revenue.

How ROAS is calculated

The ROAS calculation is one division. What it leaves out is the part that decides whether an ad made money.

  • The formula

    ROAS = revenue from ads ÷ ad spend

    Revenue is what customers paid for the orders your ads brought in, tax included. Ad spend is what you paid the ad platform for the same ads over the same days. Written as a percentage, a ROAS of 3.0 is 300%.

    Turned around, the formula plans a budget: ad spend times a target ROAS is the revenue the ads have to bring in. In the example, a target of 4.0 on the same ad spend needs $4,000 of revenue.

  • What ROAS leaves out

    ROAS counts revenue. It doesn't take off what the products cost you, what you paid to ship them, or the tax in the price, and it doesn't take off the ad spend itself.

    Give the example store $1,400 of cost of goods, $350 of shipping, and $250 of tax. With the $1,000 of ad spend, that is all of the $3,000. The ROAS is 3.0 and the profit is $0.

    The break-even ROAS calculator finds the ROAS your store needs before an ad makes money.

  • Read more

    How to calculate ROAS for a Shopify store walks through more examples, and what a good ROAS is depends on your costs, not on an average.

See profit next to ROAS.

AdZoom shows the profit of every Meta and Google campaign beside its ROAS, worked out from your store's real orders and costs.

Coming soon to the Shopify App Store