What is true ROAS?
True ROAS is the ROAS you actually got: revenue after returns, RTO and cancellations, divided by ad spend.
What is break-even ROAS?
Break-even ROAS is 1 divided by your margin before ads. At a 40% margin, it is 2.5.
Why can a 4x ROAS lose money?
Because returns and RTO cut the revenue the platform counted, and your margin may need a higher ROAS to break even.
How do I work out my true ROAS?
Multiply your platform ROAS by one minus your return rate. The ROAS profit calculator does this for you.
Which return rate should I use?
Use your combined rate of returns, RTO and cancellations over the last 90 days.
Does this apply to marketplaces?
Yes. Use your marketplace selling price and include commission in your costs.
What should I do if my true ROAS is below break-even?
Cut or rebuild those campaigns, and work on the costs that raise your break-even, such as returns and shipping.
Why does the dashboard not show returns?
Ad platforms count an order when it is placed. Returns and RTO arrive weeks later and never reach the dashboard.
Is true ROAS the same as profit?
No. True ROAS tells you whether ads pay back. Contribution margin tells you what is left after every cost.
Can you check our true ROAS?
Yes. The free growth audit shows true ROAS and profit for every channel within 48 hours.
