Advanced ROAS & ROI Calculator
Make data-driven decisions with our comprehensive marketing metrics calculator. Calculate your Return on Ad Spend (ROAS) and Return on Investment (ROI) instantly.
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Understanding ROAS & ROI
What is ROAS?
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising. It’s a key metric for evaluating the effectiveness of your advertising campaigns.
ROAS = Revenue ÷ Ad Spend
Example: If you spend $1,000 on ads and generate $5,000 in revenue, your ROAS is 5:1 or 500%.
What is ROI?
Return on Investment (ROI) measures the profitability of your investment by comparing the net profit to the total cost. Unlike ROAS, ROI accounts for all costs, not just advertising.
ROI = (Revenue – Total Costs) ÷ Total Costs × 100%
Example: If you generate $5,000 in revenue with $2,000 in total costs, your ROI is 150%.
Why Are They Important?
- Budget Allocation: Identify which campaigns deliver the best returns
- Performance Tracking: Monitor campaign effectiveness over time
- Decision Making: Make data-driven decisions about marketing investments
- Profitability Analysis: Understand true profit margins after all costs
- Scaling Decisions: Determine when to increase or decrease ad spend