ROAS (Return On Ad Spend)

In one line

ROAS (Return On Ad Spend) is revenue generated per dollar of ad spend: revenue ÷ spend. Spend $5,000 and generate $15,000 in revenue, and ROAS is 300%.

Why it matters

ROAS depends heavily on which revenue window you use (Day 0, Day 7, Day 14…) — always confirm you're comparing campaigns or periods on the same window.

How it differs from LTV

The formula structure is the same as LTV (both are revenue-to-spend ratios), but ROAS uses a fixed revenue window while LTV accounts for long-term repeat purchases. ROAS is a short-term efficiency read; LTV is the long-term value read.

Go deeper

How to actually improve ROAS is covered in Improving ROAS.