This tool allows you to easily calculate the ROAS of your Ad Campaign based on Ad Spend and Revenue.
This tool will allow you to easily calculate the Target ROAS for your Ad Campaign based on the desired ROI and the given Markup.
More information and examples for each parameter
The following table gives a detailed explanation and example of each of the calculator parameters:
| Parameter | Description |
|---|---|
|
Ad Spend, $ |
The ad spend or the cost of an ad source. |
|
Revenue, $ |
The ad revenue derived from the ad source. To be able to see revenue in your Google Ads and Google Analytics accounts, you need Google Ads Conversion Tracking and Google Analytics Enhanced Ecommerce. |
|
Markup, % |
Markup is the difference between the cost of a product or service and its selling price. The formula for calculating markup is: Markup = ( Selling Price – Cost ) / Cost * 100 For example, the selling price of the product is $100, and the cost price is $80. The markup is: Markup = ( $100 – $80 ) / $80 * 100 = 25% |
|
ROAS, % |
Return on ad spend or ROAS is the amount of revenue a company generates for every dollar spent on an advertising source. The ROAS formula is: ROAS = ( Revenue from advertising / Cost of advertising ) * 100 That means that if you spent $1000 on ads in one month and your revenue for that month is $3000, your ROAS is ( 3000 / 1000 ) * 100 = 300% per dollar spent on advertising. To be able to see ROAS in your Google Ads account, you need Google Ads Conversion Tracking and/or Google Analytics Enhanced Ecommerce. |
|
ROI, % |
Return of Investment (ROI) is a ratio between the net gain and the net cost of an investment. In other words, ROI compares the net income from an investment to the net expenses required to finance that investment. Customarily ROI is presented in the form of percentage points. Thus, when a calculation returns a result of ROI = 0.1, the financial analysts report it as the ROI = 10%. The ROI formula is: ROI = ( G – C ) / C Where: G – gain from investment C – cost of investment |