ROAS Calculator
Ads Return: See if your paid traffic is making a profit.
The Sales Machine
If ROI measures the overall health of the entire company, ROAS (Return On Ad Spend) looks with a magnifying glass only at your advertising department. It reveals how many reais return to the company for every R$ 1 invested in Facebook, Instagram, Google, or TikTok.
High ROAS means Profit? Not necessarily.
Beware of the vanity metric: A ROAS of 3 (where you spend 1,000 on ads and sell 3,000) may seem fantastic. However, if the cost of producing the merchandise, taxes, packaging, and commissions add up to 2,500, your company has actually taken a substantial operational loss! Therefore, always analyze ROAS together with your Fixed Costs and Profit Margin (use our calculators for this).
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