Ad Spend ROI Calculator

Is your advertising actually making money?

What is this? ROAS (Return on Ad Spend) is the revenue you generate for every dollar spent on advertising. But ROAS isn't profit — you also need to subtract your cost of goods/services. If your ROAS is 4:1 but your margin is 30%, you're breaking even at best.

Benchmarks by platform: Google Search: 3-5:1. Facebook/Instagram: 2-3:1. Display ads: 1-2:1. Email: 5-10:1.

The key formula: True ROI = (Revenue - Ad Spend - COGS) / Ad Spend. A campaign with 3:1 ROAS at 70% margin = 140% ROI. Same ROAS at 20% margin = only 20% ROI.

Ad Performance

Ad Spend ($)

ROAS (revenue per $1 spent)

Gross Margin (%)

Platform

ROI Analysis

Revenue Generated

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Gross Profit

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Net ROI

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Cost Per Acquisition

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Break-Even ROAS

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Platform Benchmark

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Estimates based on inputs. Actual ROAS varies by targeting, seasonality, competition, and conversion rates.

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Frequently Asked Questions

What is a good ROAS?

A 3:1 return on ad spend (spending $1 to make $3) is the minimum viable threshold. 4:1 or higher is healthy. 10:1+ is excellent for high-margin products.

How do I calculate true ad ROI?

True ROI = (Revenue - Ad Spend - Other Costs) / Other Costs × 100%. Don't just measure revenue — factor in cost of goods, shipping, fees, and your time.

What ads platforms should I use?

Google Ads for high-intent search. Facebook/Instagram for awareness and retargeting. LinkedIn for B2B. TikTok for younger audiences. Start with one platform, master it, then expand.