Advertising ROI
Measure the return on money spent on advertising.
About Advertising ROI
Advertising ROI subtracts the spend from the revenue it produced, while ROAS reports the gross multiple without deducting the original spend. A shiny ROAS can still fail once product cost and overhead are counted, so ROI is the number that tells whether paid campaigns actually pay.
Formula
Advertising ROI
ROI = (ad revenue - ad spend) / ad spend x 100
- ROAS
- Gross revenue generated per dollar of ads
Worked example
With the default values below, Advertising ROI returns Net Return of $9,000.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Ad spendminimum 0
- 5,000
- Revenue from adsminimum 0
- 14,000
Results
- Net Return
- $9,000.00
- Return on Ad Spend (ROI)
- 180.00%
- ROAS (Revenue / Spend)
- 2.80
Step by step
- 1Values used
- 2Advertising ROI
- 3Net Return= 9,000.00
- 4Return on Ad Spend (ROI)= 180.00
- 5ROAS (Revenue / Spend)= 2.80
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Advertising ROI calculated?
ROI = (ad revenue - ad spend) / ad spend x 100 Advertising ROI subtracts the spend from the revenue it produced, while ROAS reports the gross multiple without deducting the original spend.
Why does Advertising ROI matter?
A shiny ROAS can still fail once product cost and overhead are counted, so ROI is the number that tells whether paid campaigns actually pay.
What values do I need to enter?
This calculator takes 2 inputs: Ad spend, Revenue from ads. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.