How we calculate campaign ROI
In paid campaigns, ROI and ROAS answer different questions: one measures relative profit, the other revenue per dollar invested.
Use the Campaign ROI CalculatorFormula
ROAS = revenue ÷ investment
ROI (%) = ((revenue − investment) ÷ investment) × 100
Variables
- investment
- Total campaign budget, including creative and management.
- revenue
- Revenue generated by the campaign within the attribution window.
Step-by-step calculation
- We divide revenue by investment for ROAS.
- We subtract the investment before dividing to arrive at ROI.
Worked example
Inputs
- Investment: $4,000
- Revenue: $14,000
Calculation
ROAS = 3.5
ROI = 10,000 ÷ 4,000 = 250%
A 3.5× ROAS is equivalent to a 250% ROI.
Common mistakes
- Celebrating a high ROAS when the product margin doesn't cover the media cost.
- Using different attribution windows when comparing campaigns.
Frequently asked questions
What ROAS is good enough?
It depends on margin: with a 30% margin, the break-even point is around a 3.3× ROAS.
All values are in US dollars (US$). Results are estimates and do not replace professional advice.