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MasterMath

Marketing ROI Calculator

Whether an ad campaign is genuinely profitable. The ROAS the platforms show ignores the cost of the product; ROI does not.

Currency and number format for

ROI of the campaign

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ROI of the campaign—
ROAS—
Net profit—
Margin generated—
Revenue needed to break even—

How this was worked out

    The formula

    ROAS = revenue ÷ spend · ROI = (margin − spend) ÷ spend × 100

    What it means

    ROAS measures how much revenue each unit of spend brings in, but revenue is not profit. If you sell on a 30 % margin, a ROAS of 2 means that for every 1,000 spent you take 2,000, of which only 600 is margin: you lose 400.

    How to work it out by hand

    1. Work out the margin that revenue leaves
    2. Subtract the ad spend
    3. Divide by the spend and multiply by 100

    What is worth knowing

    The minimum ROAS to break even is the inverse of your margin: on a 30 % margin you need a ROAS of 3.33 just to draw level. On 50 %, of 2. That number is the one to keep in front of you when reading any ad dashboard, because the platforms always show ROAS and never your margin.

    Frequently asked questions

    What is the difference between ROAS and ROI?

    ROAS is the revenue per unit of spend. ROI also takes the cost of the product out, so it tells you whether you actually made money.

    What ROAS do I need to be profitable?

    The inverse of your margin. On a 40 % margin, a ROAS of 2.5. On 25 %, of 4.

    Is a ROAS of 3 good?

    It depends on the margin. On 50 % it is profitable; on 25 % you barely break even.