Money

Advertising ROI Calculator

Measure return on ad spend, profit, and customer acquisition cost.

MyToolPantry.comAdvertising ROI Calculator

Advertising ROI Calculator result

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Ad spend ($)Attributed revenue ($)Product or service cost for attributed sales ($)Other campaign fees ($)New customers attributed to campaign

Attributed gross profit before advertising$5,000.00Attributed gross margin62.5%Net return after advertising$3,000.00Advertising ROI150%Return on ad spend4×Cost per acquired customer including campaign fees$50.00Revenue needed to cover marketing cost at entered gross margin$3,200.00

Advertising ROI = (attributed gross profit − ad spend − campaign fees) ÷ (ad spend + campaign fees) × 100. Attributed gross profit = revenue − product/service cost. The coverage revenue divides marketing cost by the entered sales' gross-margin rate and assumes that rate remains constant. ROAS is revenue ÷ ad spend and is not profit. Keep all inputs in the same attribution window; organic demand, repeat purchases, overhead, lifetime value and cross-channel effects are excluded.

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How this tool works

The tool compares attributed profit with advertising cost and also reports return on ad spend and customer acquisition cost when the required values are available.

Assumptions

Attributed revenue, cost of attributed sales, campaign spending, fees, and customers cover the same attribution window. Product/service cost is treated as the cost of those entered attributed sales.

Limits to know

Attributed revenue or profit must use the same attribution window as ad spend. Organic demand, repeat purchases, refunds, agency fees, and cross-channel effects can change the true return.