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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.
- 01A shopper clicks your ad
You pay the cost per click set by the auction. That cost adds to ad spend.
- 02The 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.
- 03Amazon credits the sale to the ad
The order value is added to ad sales for that campaign, ad group, keyword and product.
- 04ROAS 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
| Where | What you see | Good for |
|---|---|---|
| Amazon Ads console, Campaign Manager | ROAS column for campaigns, ad groups, keywords and targets | Day-to-day checks and bid changes |
| Amazon Ads reports | Spend and sales by search term, target, placement and product | Working out ROAS for any slice of the account |
| Bulk operations files | Spend and sales per keyword and target in a spreadsheet | Changing many bids at once |
| Seller Central | No ROAS; Business Reports show total sales | Working 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 (%)| Item | Value | How |
|---|---|---|
| Ad spend | $1,200 | From Campaign Manager, last 30 days |
| Ad sales | $4,000 | Same campaigns, same dates |
| ROAS | 3.33 | 4,000 ÷ 1,200 |
| ACoS | 30% | 100 ÷ 3.33 |
| Margin before ads | 32% | Price $40, costs before ads $27.20 |
| Break-even ROAS | 3.13 | 100 ÷ 32 |
| Verdict | Small profit | 3.33 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 ads | Break-even ROAS | Break-even ACoS |
|---|---|---|
| 20% | 5.00 | 20% |
| 25% | 4.00 | 25% |
| 32% | 3.13 | 32% |
| 40% | 2.50 | 40% |
| 50% | 2.00 | 50% |
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.
| ROAS | Ad spend | Ad sales | Margin 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 | $1,002 | About $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
| Metric | Formula | Counts organic sales? | Answers |
|---|---|---|---|
| ROAS | Ad sales ÷ Ad spend | No | How much comes back per $1 of ads? |
| ACoS | Ad spend ÷ Ad sales × 100 | No | What share of ad sales goes on ads? (100 ÷ ROAS) |
| TACoS | Ad spend ÷ Total sales × 100 | Yes | What do ads cost against the whole business? |
| Break-even ROAS | 100 ÷ Margin before ads (%) | n/a | What is the lowest ROAS I can afford? |
| ROAS | Same as ACoS |
|---|---|
| 2 | 50% |
| 2.5 | 40% |
| 3 | 33% |
| 4 | 25% |
| 5 | 20% |
| 10 | 10% |
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?
How do you calculate ROAS?
What is a good ROAS on Amazon?
Is a ROAS of 2 good?
How do you convert ROAS to ACoS?
Why can a ROAS above 1 still lose money?
Where can I see ROAS in Amazon?
Last updated Oct 25, 2026 by the Amplivus strategy team. Part of the Amazon PPC glossary.