Tools
ROAS calculator
Enter what you spent on ads and the revenue they brought to see your return on ad spend, and compare it with the ROAS you need to break even.
How it is calculated
ROAS, return on ad spend, is the revenue your ads brought divided by what the ads cost. If you spend 1,000 SAR and the ads bring 3,500 SAR in sales, your ROAS is 3.5: every riyal of spend returned 3.5 riyals of revenue.
Revenue is not profit, so a ROAS above 1 does not mean the ads pay for themselves. The break-even ROAS is 1 divided by your profit margin before ad costs. With a 40% margin you keep 0.40 SAR of every riyal of sales, so you need 2.5 SAR of sales for every riyal of ads to break even. Above that, the ads earn more than they cost; below it, they cost more than they earn.
Use the revenue each platform reports for the same period as the spend, and remember that each platform attributes sales its own way.
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