ROI Calculator
Calculate your advertising Return on Investment and campaign profitability!
Not sure what ROI means? Check the FAQ below
Required Metrics
Optional Metrics
For deeper analysisProfit Metrics
ROI Analysis
Return on Investment
200%
$2.00 profit per $1 invested
Campaign Details
Industry Benchmarks
2025 DataAverage Advertising ROI by Channel
| Channel | Avg ROAS |
|---|---|
| Email Marketing | 36:1 |
| Google Ads | 8:1 |
| SEO | 7.5:1 |
| Facebook Ads | 5.3:1 |
| Instagram Ads | 4.8:1 |
| TikTok Ads | 3.6:1 |
| LinkedIn Ads | 2.5:1 |
What's a Good ROI?
Source: Hot Dog Marketing
How We Calculate Your ROI
Here's how we calculate your Return on Investment:
Revenue − Investment
Net profit from your campaign
Investment
Total amount invested in advertising
ROI (× 100)
Your Return on Investment
Tips & Insights
- 🚀 Excellent ROI! Your campaigns are highly profitable. This is a great opportunity to scale aggressively while the performance holds.
- 📈 Tip: Add campaign duration and conversions to unlock daily performance and per-conversion metrics.
What is ROI in Advertising?
ROI (Return on Investment) measures how much profit you earn relative to what you spent. In advertising, it answers the fundamental question: for every dollar I put into ads, how much profit do I get back?
An ROI of 200% means you earned $2 in profit for every $1 invested. An ROI of 0% means you broke even — revenue covered costs but nothing more. A negative ROI means you lost money. The calculator above computes all of this from your campaign numbers.
For the full definition and context, see our ROI glossary entry.
ROI Formula
ROI = (Revenue − Cost) ÷ Cost × 100
If you spent $1,000 on ads and generated $3,000 in revenue, your ROI is ($3,000 − $1,000) ÷ $1,000 × 100 = 200%. That's $2 of profit for every $1 spent. The "How We Calculate" section above shows this step by step with your numbers.
ROI vs ROAS — The Critical Difference
These two metrics get confused constantly, but they measure different things:
- ROAS (Return on Ad Spend) = Revenue ÷ Cost. Measures revenue return. A 4x ROAS means $4 revenue per $1 spent.
- ROI (Return on Investment) = (Revenue − Cost) ÷ Cost × 100. Measures profit return. That same 4x ROAS equals a 300% ROI.
ROAS is always higher than ROI because it includes your costs in the "return." A 2x ROAS sounds good until you realize it's only 100% ROI — you doubled your money but didn't account for product costs, team time, or overhead.
Use ROAS for campaign-level optimization (it's simpler). Use ROI for business decisions (it's more accurate). Our ROAS Calculator handles the campaign-level analysis with break-even ROAS based on your margins.
What is a Good Advertising ROI?
The benchmark table above shows ROI by channel, but here's the quick guide:
- Below 2:1 (100% ROI) — generally unprofitable after overhead costs
- 3:1 to 5:1 (200–400% ROI) — good for most businesses, sustainable growth territory
- 5:1+ (400%+ ROI) — excellent, industry standard target for scaling
Context matters. A SaaS company should factor in customer lifetime value, not just first-purchase revenue. A campaign with 50% ROI on first purchase might have 500% ROI when measured over the customer lifetime. Check your full customer value with our LTV Calculator, or model your complete ad profitability with the Ads Profit Calculator.
Frequently Asked Questions
What is ROI in advertising?
ROI (Return on Investment) measures the profit earned relative to the amount invested. In advertising, it tells you how much profit you make for every dollar spent on ads. An ROI of 200% means you earned $2 in profit for every $1 invested. Unlike ROAS, ROI accounts for profit — not just revenue.
What's a good ROI for ads?
The industry standard benchmark is a 5:1 ratio (400% ROI), meaning $5 revenue per $1 spent. A 3:1 to 5:1 ratio is considered good for most businesses. B2B SaaS companies with recurring revenue can aim for 5:1 to 8:1. Below 2:1 is generally unprofitable after accounting for overhead costs.
ROI vs ROAS — what's the difference?
ROI measures profit return: (Revenue − Cost) ÷ Cost × 100. ROAS measures revenue return: Revenue ÷ Cost. A 4x ROAS equals 300% ROI. ROAS is always higher because it includes costs. Use ROAS for campaign-level optimization, ROI for overall business decisions. See our ROAS Calculator for campaign-specific analysis.
How can I improve my advertising ROI?
1) Lower your costs — optimize CPM and CPC through better targeting and creative. Use our CPM Calculator and CPC Calculator to benchmark. 2) Increase conversion rates — improve landing pages and offers. 3) Raise customer value — upsells, cross-sells, and retention increase revenue per customer.
How does ROI relate to LTV?
Customer Lifetime Value (LTV) is the total revenue a customer generates over their lifetime. When calculating ROI, using LTV instead of first-purchase revenue gives a more accurate picture — especially for subscription businesses. A campaign may look unprofitable on first purchase but be highly profitable over the customer lifetime. Check our LTV Calculator to understand your full customer value.
Can ROI be negative?
Yes — negative ROI means you're losing money. If you invest $1,000 and generate only $800 in revenue, your ROI is -20%. This is common when launching new campaigns, entering new markets, or during testing phases. If ROI stays negative after optimization, consider reallocating budget. Our Ads Profit Calculator can help model different scenarios.
How do I calculate ROI over time?
Enter your campaign duration in the "Campaign Duration" field above to see daily ROI and daily profit. This helps you understand the pace of returns — a 200% ROI over 7 days is much better than 200% over 90 days. Track daily profit to spot performance trends and know when to scale or pause campaigns.
How do you calculate ROI?
Three steps: (1) subtract your total cost from your total revenue to get net profit, (2) divide net profit by total cost, (3) multiply by 100 for a percentage. The formula: ROI = (Revenue − Cost) ÷ Cost × 100. Example: $2,000 ad spend, $6,000 revenue → ($6,000 − $2,000) ÷ $2,000 × 100 = 200% ROI. Enter your numbers above for instant results.
What does 200% ROI mean?
A 200% ROI means you earned $2 in profit for every $1 invested. If you spent $1,000 on ads and got $3,000 back, your profit is $2,000 — that's 200% of your investment. In ROAS terms, 200% ROI equals a 3x ROAS. Note: ROI measures profit, not revenue — so 200% ROI is better than it might sound compared to a "3x return."
How do you calculate ROI for ads?
For advertising specifically: Ad ROI = (Ad Revenue − Ad Spend) ÷ Ad Spend × 100. For accuracy, include ALL costs — not just ad spend but also creative production, tools, and team time. If you spent $5,000 total (including $4,000 ad spend + $1,000 creative costs) and earned $15,000, your true ROI is ($15,000 − $5,000) ÷ $5,000 × 100 = 200%.