# ROAS

ROAS is how much revenue you get back per krone spent on ads. NOK 10,000 in sales on NOK 2,000 in ads gives a ROAS of 5.

Source: https://ibenta.no/en/glossary/roas
Publisher: Ibenta (https://ibenta.no)
Updated: 2026-09-27

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ROAS is revenue from ads divided by ad spend. It is given as a ratio, such as 5, or as a percentage, such as 500 percent. The ad platforms can calculate it for you if you track sales with their value.

## Revenue is not profit

ROAS measures revenue, not profit. A ROAS of 3 sounds good, but if cost of goods, shipping and fees eat two thirds of the sale price, you break even. So you need to know your margin before you know what ROAS you need. If you want to know what you actually keep, look at [ROI](/en/glossary/roi).

The number is also never better than the tracking behind it. Google and Meta count sales by their own rules, and the same purchase can be counted by both. How credit for a sale is shared out is called [attribution](/en/glossary/attribution).

## How to find your limit

Divide 1 by your gross margin. With a 40 percent margin, the limit is 1 / 0.4 = 2.5. With a ROAS below 2.5, you lose money on ad sales before you have paid a single other cost. Write the number on a sticky note and compare it with what your ad account shows the next time you log in.