How it works
The formula
Profit is what is left of revenue after the marketing spend and the cost of the goods sold. ROI sets that profit against the spend: spend 1,000, earn 4,000 on goods that cost 1,500, and profit is 1,500, an ROI of 150%.
ROI = (revenue − spend − cost of goods) ÷ spend × 100
What else it shows
ROAS is revenue divided by spend, margin is profit divided by revenue, and break-even is the revenue at which spend plus cost of goods is just covered.




