marketing guide

ACoS vs ROAS: Formulas and Conversion

Understand how ACoS and ROAS express the same advertising relationship from opposite directions and how to convert between them.

ACoS divides ad spend by attributed sales; ROAS divides attributed sales by ad spend. When both use exactly the same inputs, they are mathematical inverses.

Conversion formulas

  • ACoS % = 100 ÷ ROAS
  • ROAS = 100 ÷ ACoS %

A 5× ROAS equals 20% ACoS. A 4× ROAS equals 25% ACoS.

Which presentation is better?

Marketplace teams often use ACoS because it resembles a cost percentage that can be compared with gross margin. Cross-channel teams often use ROAS because it reads as revenue per advertising unit.

The metric label matters less than consistent attribution, margin awareness and a clear definition of sales.

Sources

This guide is educational and does not provide financial, accounting, tax or legal advice.

Use the calculators

All calculators