ROAS (return on ad spend) is ad sales divided by ad spend, shown as a multiple such as 4x. It is the inverse of ACoS and the number Flipkart, Myntra and quick-commerce dashboards prefer. Enter ad spend and ad-attributed sales to get ROAS and the equivalent ACoS side by side.
Use ad spend and ad-attributed sales for the same period and level.
Worked example: ₹12,000 of ad sales from ₹3,000 of spend is a ROAS of 4x, which is the same result as a 25% ACoS. Every rupee spent on ads brought back four rupees of sales. Note that this is revenue, not profit: whether 4x is good depends on how much of each rupee of revenue is margin.
For a noon or Amazon UAE account the arithmetic is identical in dirhams: AED 400 of sales on AED 100 of spend is 4x.
Sellers who run both Amazon and Flipkart end up translating constantly. The table saves the arithmetic.
| ROAS | ACoS | Read as |
|---|---|---|
| 2x | 50% | Half of ad revenue went back into ads |
| 3x | 33.3% | A third |
| 4x | 25% | A quarter |
| 5x | 20% | A fifth |
| 8x | 12.5% | One in eight |
| 10x | 10% | One in ten |
Break-even ROAS is 1 divided by your margin before ads. A product with a 35% margin breaks even at 1 ÷ 0.35 = 2.86x; anything above that is profit on the ad sale itself, and anything below is paid for by the hope of organic sales later. A product with a 20% margin needs 5x just to break even, which is why low-margin categories struggle with paid ads at all.
Because ROAS ignores margin, two sellers can report the same 4x with opposite outcomes. Compute break-even first, then judge ROAS against it.
The ad console shows ROAS per campaign; comparing it across a thousand keywords means a download. BlooprintAI lists ROAS, ACoS, CPC and CVR for every keyword and target in one table, filterable, with bulk bid changes from the same screen.
Ad spend and ad sales in, ACoS and ROAS out. The first number every Amazon seller checks.
Learn more →Price, cost and marketplace fees in, profit margin and break-even ACoS out. Sets the ceiling for every bid.
Learn more →Flipkart reports ROI, not ACoS. Get ROI as a multiple and the equivalent ACoS so both marketplaces read the same.
Learn more →Bulk campaign creation, bid and budget changes in bulk, and keyword analysis for Amazon India. ₹14,999 per month, 7-day free trial.
Learn more →ROAS = ad-attributed sales ÷ ad spend. ₹12,000 of ad sales on ₹3,000 of spend is 4x. It is the inverse of ACoS: 4x ROAS equals 25% ACoS.
Above your break-even ROAS, which is 1 ÷ margin before ads. A 35% margin needs more than 2.86x; a 20% margin needs more than 5x. Category averages do not know your margin.
Yes in practice. Flipkart defines ROI as ad revenue ÷ ad spend, which is the ROAS formula. A Flipkart ROI of 4 is the same result as a 4x ROAS or a 25% ACoS on Amazon.
No. It measures revenue per rupee of ad spend. Profit depends on your margin, so use the break-even ACoS calculator alongside it.
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