What is ROAS (Return on ad spend)?

ROAS, or return on ad spend, is the revenue an ad produces for each unit of money spent on it. In Meta Ads Manager, purchase ROAS is purchase conversion value divided by amount spent. It counts only purchases that Meta attributes to your ads under the ad set's attribution setting, using data from your connected Meta Business Tools. Meta notes that the figure may be estimated or modelled where data is partial or missing.

ROAS measures revenue, not profit. A ROAS of 3 returns three units of revenue per unit of spend before product, shipping and other costs, so whether it makes money depends on your margins. Break-even ROAS is the level at which those costs are covered.