ROAS compares revenue with advertising spend. It does not tell you how much of that revenue survived product and fulfilment costs. The ROAS calculator puts the ratio beside the entered order costs so a large revenue multiple does not stand in for profit.
Use matching revenue, spend and orders
Enter PKR 100,000 revenue, PKR 20,000 advertising spend and 100 orders for one consistent period or campaign group. Add PKR 60,000 of non advertising costs covering those orders. ROAS is five because revenue is five times advertising spend.
After non advertising costs, PKR 40,000 remains available to fund advertising. Subtract the PKR 20,000 campaign spend and the included profit is PKR 20,000. This result covers the costs you entered; omitted rent, wages or other overhead still sit outside it.
Translate the totals into an acquisition budget
Advertising cost per order is PKR 200. The available pre advertising contribution per order is PKR 400. Under these assumptions, PKR 400 is the maximum acquisition cost before this included contribution reaches zero.
The corresponding break even ROAS is 2.5: PKR 100,000 revenue divided by PKR 40,000 available contribution. Your current ratio of five is above that boundary, but the result depends on the accuracy of the underlying costs and revenue.
Check what the advertising dashboard calls revenue
An attributed purchase value may include shipping, cancelled orders or receipts later refunded. Use a consistent definition across revenue and costs, and identify whether the order count describes purchases or completed deliveries. The calculator cannot repair an attribution mismatch.
A COD campaign deserves particular care. Advertising spend usually exists even when delivery fails. Use COD RTO Expected Profit Calculator to review that loss pattern before treating every dashboard purchase as an earned delivered order.
Do not assign a ratio where the denominator is zero
With no advertising spend, ROAS is undefined rather than an infinite achievement to report. If non advertising costs consume all revenue, there is no positive acquisition budget under this model, however attractive the revenue total looks.
For a single offer, Maximum CPA Calculator starts from its price and target profit. For several conversion scenarios, Sales & Profit Scenario Planner compares entered visit assumptions with an advertising budget. Save the cost scope beside your ROAS result so the next campaign comparison measures the same thing.