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Glossary · Metrics & formulas

What is ROAS on Amazon?

Return on ad spend Said "row-az". Amazon shows it as a ratio, like 3.33.

Definition

ROAS (return on ad spend) is the ad sales you get back for every $1 you spend on Amazon ads: ad sales divided by ad spend. A ROAS of 4 means $4 of sales for every $1 of ads. It is the inverse of ACoS, so a ROAS of 4 is a 25% ACoS. The higher the ROAS, the more each ad dollar sells.

  • Reviewed by the Amplivus strategy team
  • Updated Oct 25, 2026
  • 6 min read
On this page
  1. Why ROAS matters
  2. How ROAS works
  3. Where you find ROAS on Amazon
  4. ROAS formula and example
  5. What is a good ROAS on Amazon?
  6. Why a ROAS above 1 can still lose money
  7. ROAS vs ACoS, TACoS and break-even ROAS
  8. How to raise ROAS without losing sales
  9. Common ROAS mistakes
  10. Authoritative resources
  11. Frequently asked questions

In short

  • ROAS = ad sales ÷ ad spend. A ROAS of 4 means $4 of ad sales for every $1 of ads.
  • It is the inverse of ACoS: ROAS = 100 ÷ ACoS, so a 25% ACoS is a ROAS of 4.
  • A good ROAS is one above your break-even ROAS: 100 divided by your margin before ad costs.
  • A ROAS above 1 can still lose money, because product cost and Amazon fees come out of every sale.

Why ROAS matters

ROAS answers the question most owners ask first: what did I get back for what I spent? Because it is a ratio, you can compare a small test campaign with a large one on the same scale.

  • It is easy to read. A ROAS of 5 means $5 of sales per $1 of ads. There is no percentage to flip.
  • It compares channels. Most ad platforms report ROAS, so you can set Amazon next to other channels on the same terms.
  • It guides bids. Rule-based bidding in Sponsored Products changes bids to aim for a ROAS you set.
  • It shows when to spend more. A ROAS well above break-even means you can likely afford higher bids on searches that sell.

How ROAS works

ROAS uses the same two numbers as ACoS, the other way up.

  1. 01
    A shopper clicks your ad

    You pay the cost per click set by the auction. That cost adds to ad spend.

  2. 02
    The shopper buys within the attribution window

    Sponsored Products credits sales made within 7 days of a click for sellers (14 days for vendors); Sponsored Brands and Sponsored Display use 14 days.

  3. 03
    Amazon credits the sale to the ad

    The order value is added to ad sales for that campaign, ad group, keyword and product.

  4. 04
    ROAS is worked out

    Ad sales divided by ad spend, for whatever level and date range you are looking at.

Sales keep arriving for up to 14 days after a click, so ROAS for the last week or two looks lower than it will end up. Judge it on a closed date range.

Where you find ROAS on Amazon

WhereWhat you seeGood for
Amazon Ads console, Campaign ManagerROAS column for campaigns, ad groups, keywords and targetsDay-to-day checks and bid changes
Amazon Ads reportsSpend and sales by search term, target, placement and productWorking out ROAS for any slice of the account
Bulk operations filesSpend and sales per keyword and target in a spreadsheetChanging many bids at once
Seller CentralNo ROAS; Business Reports show total salesWorking out TACoS alongside ROAS

ROAS formula and example

The example uses the same account as our ACoS guide, so you can see both numbers side by side.

ROAS = Ad sales ÷ Ad spendROAS = 100 ÷ ACoSBreak-even ROAS = 100 ÷ Margin before ads (%)
ItemValueHow
Ad spend$1,200From Campaign Manager, last 30 days
Ad sales$4,000Same campaigns, same dates
ROAS3.334,000 ÷ 1,200
ACoS30%100 ÷ 3.33
Margin before ads32%Price $40, costs before ads $27.20
Break-even ROAS3.13100 ÷ 32
VerdictSmall profit3.33 is above the 3.13 break-even

What is a good ROAS on Amazon?

A good ROAS is one above your break-even ROAS. Below it, every ad sale loses money. The lower your margin, the higher the ROAS you need.

Margin before adsBreak-even ROASBreak-even ACoS
20%5.0020%
25%4.0025%
32%3.1332%
40%2.5040%
50%2.0050%

Then set a target above break-even for the profit you want to keep. A product you are launching can run below break-even for a set time to build rank; a mature product should not.

Target ROAS = 100 ÷ (break-even ACoS − the profit you want to keep). With a 32% margin and 7 points of profit to keep, aim for a ROAS of 4.

Why a ROAS above 1 can still lose money

A ROAS of 1 means your ads brought in as much in sales as they cost. That sounds like break-even, but it is not. Product cost, Amazon referral and fulfillment fees, and shipping all come out of those sales before you see a profit.

ROASAd spendAd salesMargin before ads at 32%Profit after ads
1.0$1,000$1,000$320−$680
2.0$1,000$2,000$640−$360
3.13$1,000$3,130$1,002About $0
4.0$1,000$4,000$1,280$280

That is why we judge ROAS against break-even ROAS, never against 1.

ROAS vs ACoS, TACoS and break-even ROAS

MetricFormulaCounts organic sales?Answers
ROASAd sales ÷ Ad spendNoHow much comes back per $1 of ads?
ACoSAd spend ÷ Ad sales × 100NoWhat share of ad sales goes on ads? (100 ÷ ROAS)
TACoSAd spend ÷ Total sales × 100YesWhat do ads cost against the whole business?
Break-even ROAS100 ÷ Margin before ads (%)n/aWhat is the lowest ROAS I can afford?
ROASSame as ACoS
250%
2.540%
333%
425%
520%
1010%

How to raise ROAS without losing sales

Cutting every bid raises ROAS, and usually lowers sales with it. These moves remove waste instead.

Common ROAS mistakes

  • Treating a ROAS of 1 as break-even. Product cost and fees mean you need a ROAS above your break-even ROAS to make money.
  • Judging the last few days. Sales are still being credited for up to 14 days, so recent ROAS looks worse than it is.
  • One target for the whole account. Margins differ by product, so break-even ROAS does too.
  • Chasing the highest ROAS. A very high ROAS often means bids are too low to win searches that would sell at a profit.
  • Comparing channels without checking attribution. Amazon credits sales within its own attribution window, and other platforms count differently.

Authoritative resources

Frequently asked questions

What does ROAS stand for?
Return on ad spend. It is the ad sales you get back for each $1 you spend on ads.
How do you calculate ROAS?
Divide ad sales by ad spend. $4,000 of ad sales from $1,200 of ad spend is a ROAS of 3.33.
What is a good ROAS on Amazon?
One above your break-even ROAS, which is 100 divided by your margin before ad costs. With a 32% margin, break-even ROAS is about 3.13, so a ROAS of 3.33 makes a little money.
Is a ROAS of 2 good?
It depends on your margin. A ROAS of 2 is a 50% ACoS, so it only breaks even if your margin before ads is 50% or more.
How do you convert ROAS to ACoS?
Divide 100 by ROAS. A ROAS of 4 is a 25% ACoS, and a 25% ACoS is a ROAS of 4.
Why can a ROAS above 1 still lose money?
ROAS compares ad sales with ad spend, not with profit. Product cost, Amazon fees and shipping come out of those sales too, so you need a ROAS above your break-even ROAS to make money.
Where can I see ROAS in Amazon?
In the Amazon Ads console, Campaign Manager has a ROAS column for campaigns, ad groups, keywords and targets. Seller Central does not show ROAS.

Last updated Oct 25, 2026 by the Amplivus strategy team. Part of the Amazon PPC glossary.

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