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Advertising ROI Calculator

Estimate the return on investment from your advertising spend using revenue, costs, and campaign budget.

Your Details

Overview

Use this Advertising ROI Calculator to estimate how effectively your campaign turns spend into profit. Enter your advertising spend, campaign revenue, other costs, gross margin, and conversions to review ROI, net profit, ROAS, and cost per conversion.

How it works

The calculator first estimates gross profit by applying your gross margin to campaign revenue. It then adds ad spend and other campaign costs to find total cost. Net profit is gross profit minus total cost, and ROI is net profit divided by total cost, shown as a percentage. It also calculates ROAS, cost per conversion, and revenue per conversion to help you evaluate campaign efficiency from different angles.

How to use this calculator

  1. 1Enter the total amount spent on advertising.
  2. 2Add the revenue attributed to the campaign.
  3. 3Include any other campaign-related costs.
  4. 4Enter your gross margin percentage.
  5. 5Add the total number of conversions.
  6. 6Review the estimated ROI, profit, and efficiency metrics.

Example Calculation

Advertising spend

$5,000

Revenue from campaign

$12,000

Other campaign costs

$1,000

Gross margin

60%

Conversions

150

Advertising ROI

20.0%

With $5,000 in ad spend, $12,000 in campaign revenue, $1,000 in other costs, and a 60% gross margin, estimated gross profit is $7,200, net profit is $1,200, ROI is 20.0%, and ROAS is 2.40x.

Frequently asked questions

What does this advertising ROI calculator estimate?

It estimates campaign ROI based on revenue, gross margin, ad spend, and other campaign costs.

What is the difference between ROI and ROAS?

ROI looks at profit after costs, while ROAS measures revenue generated relative to ad spend only.

Why does gross margin matter in ROI?

Revenue alone does not show profit. Gross margin helps estimate how much of that revenue is available before campaign costs are deducted.

Should I include agency and creative costs?

Yes, if you want a more realistic campaign ROI, include non-media costs such as agency fees, design, software, and production.

What counts as a conversion?

A conversion can be a sale, lead, signup, booking, or any other campaign goal you choose to measure consistently.

Can I use this calculator for lead generation campaigns?

Yes. If you can estimate revenue from those leads and know your margin, the calculator can help evaluate campaign performance.

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Assumptions and warnings

Assumptions

  • Revenue entered is reasonably attributable to the advertising campaign.
  • Gross margin is applied evenly across all campaign-generated revenue.
  • Other campaign costs include all non-media costs you want reflected in ROI.
  • Results are estimates and do not include wider business overheads, taxes, or future customer value unless already included in your figures.

Warnings

  • This calculator provides an estimate only and is not financial advice.
  • Attribution methods can significantly affect ROI results.