Divide ad revenue by ad spend for return on ad spend, and see the break-even ROAS and profit for your margin.
Enter ad revenue and ad spend.
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ROAS is the revenue each unit of ad spend brought back: 6,000 revenue on 1,500 spend is 4, or 400%.
ROAS = revenue ÷ ad spend
Enter your gross margin and the tool gives the ROAS you need just to cover the ad spend, which is one divided by the margin. At a 40% margin that is 2.5. Profit is revenue times margin minus spend.
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Marketing ROI CalculatorTurn ad spend, revenue and cost of goods into profit, ROI, ROAS, margin and break-even revenue.
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