utilkit

Marketing ROI Calculator

Calculate ROAS, marketing ROI, break-even ROAS, required revenue, CAC, CPA, and target CPA from campaign spend and revenue.

Return on ad spend

ROAS

0.00x
Sales revenue
$0
Net return
$0
Marketing ROI
0%

How to use this marketing ROI and ROAS calculator

  1. Enter how much you spent on ads or a campaign.
  2. Enter the sales revenue you can reasonably connect to that spend.
  3. Choose another calculation when you want break-even ROAS, required revenue, CAC, CPA, or target CPA.
  4. Compare the result before scaling the campaign.

ROAS, marketing ROI, CAC, CPA, and targets

ROAS shows revenue returned per dollar spent. Marketing ROI shows the return after subtracting spend. CAC and CPA are acquisition cost metrics for people who also track customers or actions.

Use break-even ROAS to understand the minimum profitable return, required revenue to plan a campaign target, and target CPA to set an action bid ceiling before you launch or scale spend.

How the metrics are calculated

Marketing ROI
\operatorname{Marketing\ ROI} = \frac{G - S}{S}

G is profit kept from sales revenue and S is total spend.

ROAS
\operatorname{ROAS} = \frac{R}{S}

R is attributed revenue and S is total spend.

CAC
\operatorname{CAC} = \frac{S}{C}

C is new customers acquired.

CPA
\operatorname{CPA} = \frac{S}{A}

A is conversions or measured actions.

Break-even ROAS
\operatorname{BreakEven\ ROAS} = \frac{S}{M \cdot P}

S is total spend, M is profit margin, and P is ad spend.

Required revenue
R_{required} = T_{ROAS} \cdot S

T_ROAS is the target ROAS multiple.

Target CPA
\operatorname{Target\ CPA} = V \cdot M - P_t

V is average order value, M is profit margin, and P_t is target profit per action.

The calculator treats ad spend plus other campaign costs as total spend. ROAS is sales revenue divided by total spend. Marketing ROI is revenue minus total spend, divided by total spend. If profit margin is entered, ROI uses revenue multiplied by profit margin instead of top-line revenue.

Marketing ROI calculator FAQ

Should I use revenue or profit for marketing ROI?
Profit is usually better for ROI because it accounts for margin. ROAS is the revenue-focused metric.
What is a good ROAS?
It depends on margin and operating costs. A high ROAS can still be unprofitable if margins are low.
Are CAC and CPA the same?
Not always. CAC is cost per paying customer. CPA is cost per action, such as a lead, trial, signup, download, or purchase.
What is break-even ROAS?
Break-even ROAS is the return multiple needed for revenue to cover spend after margin. Lower margins require higher break-even ROAS.
What is required revenue?
Required revenue is the sales total needed to hit a target ROAS for a given ad spend and campaign cost.
What is target CPA?
Target CPA is the most you can spend per action while still leaving the profit you want from each purchase or conversion.

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