ROAS, or return on ad spend, is the revenue your ads produced divided by what you spent on them. If ₹50,000 of ads brings ₹2,50,000 in sales, ROAS is 5x. Whether that is good depends on your margin: break-even ROAS is 1 divided by your gross margin, so a 40% margin needs at least 2.5x.
ROAS stands for return on ad spend. It tells you how much revenue came back for every unit of money you put into ads. A ROAS of 5x means every rupee, dirham or pound spent on ads returned five in revenue. It is the clearest single number for deciding which campaigns deserve more budget.
The ROAS formula
ROAS = revenue from ads ÷ ad spend
For example, a coaching institute spends ₹50,000 on a Meta campaign in a month. Twenty students enrol from it, each paying ₹40,000, so revenue is ₹8,00,000. ROAS is ₹8,00,000 ÷ ₹50,000 = 16x. These numbers are illustrative.
Calculate ROAS at campaign, ad set and ad level. A campaign with a healthy average can hide one ad that loses money and another that should get double the budget.
Break-even ROAS: what counts as good
ROAS only counts revenue, not profit. To know whether a campaign pays for itself, compare it with your break-even ROAS:
Break-even ROAS = 1 ÷ gross margin
| Gross margin | Break-even ROAS |
|---|---|
| 25% | 4.0x |
| 40% | 2.5x |
| 60% | 1.7x |
| 80% | 1.25x |
Below break-even, the ads cost more than the gross profit they bring. Well above it, you can usually afford to spend more.
Tracking ROAS when sales close offline
For an online shop, Meta sees the purchase on your website. For a clinic, a property developer or a travel agency, the sale happens in a WhatsApp chat, on a call or at the counter, and Ads Manager never sees it. To get real ROAS:
- Keep the ad on every lead. Meta returns the ad ID with each lead form entry, and with the first message from a Click-to-WhatsApp ad.
- Record the deal value when a lead becomes a customer. Make it a required field, or ROAS will be understated.
- Count revenue by the lead's original ad, not the date the deal closed, and wait for your normal sales cycle before judging.
- Use the same basis for spend and revenue: same currency, both before or both after GST or VAT.
You can also send won deals back to Meta, through the Conversions API for CRM for lead forms or the Conversions API for Business Messaging for Click-to-WhatsApp chats, so its delivery learns which people buy.
How salestrack helps
salestrack's Meta ads ROI connects Meta and Google ad spend to the deals your team closes. Leads keep their campaign, ad set and ad; when a deal is marked won with a value, revenue attaches to that ad. You see ROAS and cost per customer for every ad, next to cost per lead. The marketing ROI guide shows how to read it.
Related questions
Is ROAS a percentage?
It can be written either way. 5x, 5:1 and 500% all mean the same thing: five units of revenue for every unit spent on ads. Most ad teams write it as a multiple, like 5x.
What is the difference between ROAS and ROI?
ROAS divides revenue by ad spend only. ROI looks at profit after all costs, including the cost of the product or service, salaries and tools. A campaign can have a high ROAS and still lose money if margins are thin.
What is a good ROAS?
Anything comfortably above your break-even ROAS. Break-even ROAS is 1 divided by gross margin, so a business with a 25% margin needs 4x and one with a 60% margin needs about 1.7x.
How do I calculate ROAS when customers buy on WhatsApp or in person?
Store the ad ID on each lead, record the deal value when the lead becomes a customer, then add up revenue per ad and divide by that ad's spend. Your CRM or a sheet has to do this join, because Meta cannot see those sales.
Can Meta show my real ROAS?
Only if it receives your sales. For website purchases, the pixel and Conversions API report them. For sales that happen in a chat, Meta's Conversions API for Business Messaging can receive Purchase events tied to Click-to-WhatsApp ad clicks.
Sources
Checked on 1 November 2026. WhatsApp and Meta change their rules and prices often, so check the source before you rely on a detail.
Read next
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