How it works
Return on investment (ROI) answers one question: did the ads pay for themselves? Subtract what you spent from the revenue the ads brought in, then divide by what you spent. A positive ROI means the ads made money; a negative one means they lost money.
Do not confuse ROI with ROAS (return on ad spend). ROAS is revenue ÷ spend — a 4.0× ROAS is the same as a 300% ROI. This calculator shows both, so the number matches whichever term your team uses.
Formula
Profit = revenue from ads − ad spend. ROI = profit ÷ ad spend × 100. ROAS = revenue ÷ ad spend. (A 300% ROI means every $1 of ads returned $4 of revenue.)
What each input means
- Ad spend: Everything you spent on the campaign: platform spend, agency fees, and creative costs.
- Revenue from ads: The revenue you can attribute to the ads — sales that came from the campaign.
Worked example: $2,000 spend, $8,000 revenue
- Profit: $8,000 − $2,000 = $6,000
- ROI: $6,000 ÷ $2,000 × 100 = 300%
- ROAS: $8,000 ÷ $2,000 = 4.0×
- Every $1 of ads returned $4 of revenue and $3 of profit.
Frequently asked questions
What is a good ad ROI?
Anything above 0% means the ads paid for themselves. Many advertisers aim for at least 100% ROI (a 2× ROAS) after all costs, but the right target depends on your margins — a 50% ROI can be great on a high-margin product and terrible on a thin-margin one.
What is the difference between ROI and ROAS?
ROI is profit divided by spend; ROAS is revenue divided by spend. A campaign with $8,000 revenue on $2,000 spend has a 4.0× ROAS and a 300% ROI. ROI is the stricter number — it subtracts the spend first.
Should I count agency fees in the spend?
Yes, for an honest ROI. Include ad spend plus agency fees, creative costs, and tools. Counting only the platform spend flatters the result.
What if the ROI is negative?
The campaign lost money. Before killing it, check whether the revenue is fully tracked — sales that come days later, or on another device, are often missing from the reported number.