This tool allows you to easily caclulate ROI, ROAS, Fee, Gross and Net Profit based on Ad Spend, Revenue, Markup and Payment Processor Fee. This calculator can be used to calculate the ROI of Google Ads, Bing Ads, Facebook Ads, Instagram Ads, Pinterest Ads, Amazon Ads and other online advertising platforms.
This tool allows you to easily caclulate ROI, Revenue, Fee, Gross and Net profit based on Ad Spend, ROAS, Markup and Payment Processor Fee. This calculator can be used to calculate the ROI of Google Ads, Bing Ads, Facebook Ads, Instagram Ads, Pinterest Ads, Amazon Ads and other online advertising platforms.
This tool allows you to easily caclulate ROI, ROAS, Markup, Fee, Gross and Net Profit based on Ad Spend, Revenue, Cost of Goods Sold and Payment Processor Fee. This calculator can be used to calculate the ROI of Google Ads, Bing Ads, Facebook Ads, Instagram Ads, Pinterest Ads, Amazon Ads and other online advertising platforms.
This tool allows you to easily caclulate ROI based on ROAS, Markup and Payment Processor Fee. This calculator can be used to calculate the ROI of Google Ads, Bing Ads, Facebook Ads, Instagram Ads, Pinterest Ads, Amazon Ads and other online advertising platforms.
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% |
|
Fee, % |
The payment processor’s fee or any other fee applied to the revenue. |
|
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. |
|
Cost of goods sold, $ |
Cost of Goods Sold (COGS) is the total cost incurred by a company to produce or acquire the goods or services it sells during a specific time period. This includes expenses like raw materials, labor, and manufacturing costs. |
|
Gross Profit, $ |
Gross Profit is the difference between revenue and cost of goods sold (COGS) before deducting overheads, payroll, taxation, and interest payments. |
|
Net Profit, $ |
Net profit is the company’s earnings after removing all cost of goods sold (COGS), overheads, marketing expenses, and even taxes. You can consider it as the money you can pocket at the end of the business transaction. |
|
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 |