# What is ROAS (return on ad spend)?

ROAS is revenue attributed to ads divided by the ad spend that produced it. A ROAS of 2.0 means two dollars of revenue per dollar spent.

ROAS ignores margin, so a break-even ROAS depends on your gross margin. Calculate break-even ROAS as 1 divided by gross margin.

URL: https://www.ottosocial.ai/resources/glossary/roas