Let me ask you a question.

Have you ever presented a strong 5:1 ROAS to your leadership team, only to face tough questions later when the revenue numbers don’t match?

If you’ve ever been in that position, you know how frustrating it is.

It feels like your ad reports are telling one story, and the balance sheet is telling another.

Hi, I’m Ian Dionaldo.

For the past 13+ years, I’ve been in the trenches helping businesses like yours build predictable growth engines.

I’m here to show you how to calculate ROAS the right way.

This is the method that uncovers true profit and gives you numbers you can report to the C-suite with total confidence.

TL;DR: The 30-Second Guide to REAL ROAS

• Your Dashboard Lies: The basic ROAS formula (Revenue / Ad Spend) is misleading because it ignores dozens of hidden costs.

• Find Your True Cost: To get an honest ROAS, you must include all costs: platform spend + agency/team salaries + creative costs + software fees.

• Know Your Break-Even Point: Don’t chase random benchmarks. Calculate your Break-Even ROAS (1 / Your Profit Margin) to know the exact number you need to hit to be profitable.

• See the Whole Picture: ROAS is just one metric. For sustainable growth, you must also track your Marketing Efficiency Ratio (MER) for a total view, and your LTV-to-CAC Ratio to ensure you’re acquiring customers profitably.

What Is ROAS, Really?

ROAS stands for Return on Ad Spend.

It’s a simple metric that measures how much revenue you earn for every dollar you spend on advertising.

The textbook formula looks like this:

ROAS = Revenue from Ads / Total Cost of Ads

For example, if you spend $1,000 on ads and generate $4,000 in revenue, your ROAS is 4:1.

But as you’re about to see, the “Total Cost of Ads” is where most people get it wrong.

Why Your Dashboard ROAS Is Lying to You

That number you see in your Google or Meta Ads dashboard is incomplete.

It’s like an iceberg—you only see the tip, while the most dangerous parts are hidden underwater.

The Hidden Costs in Your ROAS Calculation

To find your true and honest ROAS, your cost calculation needs to include every cent spent to make a campaign happen.

Here is a checklist of costs you must include:

• Ad Spend: The money paid directly to the ad platforms (Google, Meta, etc.).

• Team Costs: The fees for your agency, freelancers, or a portion of your in-house team’s salaries.

• Creative Costs: The money you spent on video production, graphic design, and copywriting.

• Tool Costs: The monthly subscriptions for any marketing software you used for the campaign.

Forgetting these costs is the #1 reason why a “successful” campaign might not actually be profitable.