Advertising ROI calculator
ROAS and simplified ROI from revenue and advertising spend.
Fill in the fields and the result will appear here automatically.
Shows ROAS and a simplified ROI using campaign revenue and advertising spend only. Revenue minus advertising spend excludes product costs, fees and other expenses, so it is not net business profit.
How it works
Formula and logic
ROAS = revenue ÷ advertising spend. Simplified ROI = (revenue − advertising spend) ÷ advertising spend × 100. ROAS of 2 : 1 corresponds to ROI of 100%, but a positive difference does not prove profit after all costs.
Example
Revenue 200,000 and advertising 50,000: ROAS 4 : 1, simplified ROI 300%, difference 150,000. Zero revenue with the same spend gives ROAS 0 : 1 and ROI −100%.
Fields and units
- Revenue from the campaign — monetary units
- Campaign spend — monetary units
How to use
- — Enter revenue attributed to this advertising campaign.
- — Enter positive advertising spend for the same campaign in the same monetary unit.
- — Compare ROAS with the simplified ROI; the difference subtracts advertising spend only.
Method and limitations
- Calculation method
- Formula and logic
- Data or methodology source
- Google Ads: full ROI includes product costs — boundary of this simplified form
- Limitation
- Excludes product costs, fees, taxes and acquisition costs outside the entered advertising spend. Revenue attribution is supplied by the user.
FAQ
Which figure should I use?
ROAS shows revenue per unit of advertising spend. Simplified ROI shows the excess of that revenue over advertising relative to advertising spend. Both require consistent attribution and exclude other business costs.
Where is break-even?
ROAS 1 and ROI 0% cover advertising spend only. With product costs and fees, business break-even is higher and this form does not calculate it.
Should revenue be net of cost of goods?
Use revenue, not profit, for conventional ROAS. Subtracting product costs changes what the ROAS row measures. For ROI based on all costs, collect the full cost total separately and use the ROI calculator.
Why can ROI be −100%?
The campaign brought no revenue at all, so the entire spend was lost.