Documentation
Read profit, not just ROAS
Blended ROAS divides revenue by ad spend. Net profit / ad spend divides what's left.
Orders come from Shopify. Ad spend comes from Meta, TikTok and Google. The example below is the same as on the home page: numbers consistent with each other, not a customer store.
P&L statement
Example · 30 days
| Revenue | €42,000 |
|---|---|
| Ad spend | − €10,000 |
| COGS | − €7,400 |
| Shipping | − €2,400 |
| Payment & subscription fees | − €1,200 |
| Net profit | + €21,000 |
Meta ROAS
4.2×
revenue / ad spend
True ROAS
2.1×
net profit / ad spend
Illustrative figures, internally consistent. Not a customer result.
€42,000 collected, €10,000 in ad spend. Blended ROAS (revenue ÷ ad spend) shows 4.2×. After ad spend, COGS, shipping and fees, €21,000 is left: net profit / ad spend is 2.1×.
Net profit
Contribution margin − fixed costs − estimated income tax
Collected VAT is removed only if the store setting asks for it. Income tax is only counted when a tax status is entered.
Net margin
Net profit ÷ revenue
Blended ROAS (MER)
Net revenue ÷ ad spend
All store sales, all ad spend. Not to be confused with the ROAS reported by Meta, TikTok or Google, which divides the purchase value the ad platform credits itself with.
ROAS measured by ProfitPilotPro
Net revenue of the real Shopify orders matched to the ad ÷ spend
Calculated by ProfitPilotPro from your orders, matched by their UTMs (Ads and Creatives pages) or credited by the model (Attribution page): each sale counts once.
ROAS reported by Meta, TikTok or Google
Purchase value claimed by the ad platform ÷ spend
The figure from the platform's ads manager, under its own windows (views included): the same sale can count there for several campaigns or platforms. “ROAS reported by the ad platforms” when they're mixed.
Net profit / ad spend
Net profit ÷ ad spend
Below 0, the period is losing money. Above 0, there's money left after ad spend.
NCPA
Ad spend ÷ new customer orders
New-customer ROAS
New-customer net revenue ÷ ad spend
Breakeven ROAS
1 ÷ gross margin (margin before ads)
Compare it with blended ROAS. In the example, the margin before ads is 73.8%, so the breakeven is 1.35×. It isn't a threshold for net profit / ad spend.
Contribution margin
Gross profit − ad spend
Gross profit = net revenue − COGS − shipping − payment fees − packing. Before fixed costs.
TACoS
Ad spend ÷ revenue
Share of revenue put back into advertising.
Multi-touch attribution
Pro and Agency plans. Each order counts once: the chosen model splits it between the channels of its journey, so Meta and TikTok don't both count the same sale. Models: Last click, First click, Linear, Time decay, U-shaped, Clicks + views (fixed window: all time) and Survey (post-purchase survey answer, extended to orders without a response once at least 15% of orders and 30 responses are in). Windows: 1, 7, 14, 28 days or all time. A direct visit, email or SMS after an ad click doesn't take the order away from that ad (except in First click, or with the “Previous split” setting). Compare mode puts 2 or 3 model + window pairs side by side, by channel then by campaign, next to what each ad platform reports (never added up). Date ranges: today, 7, 30, 90 days, 12 months, or a custom range, in the store's time zone. Spend is converted to the reporting currency.
The P&L breakdown is also on the net profit page.