Calculate the profitability of your advertising campaigns instantly.
Include ad spend, agency fees, and creative costs.
Total sales value attributed to this campaign.
Return on Investment (ROI):
Net Profit:
Return on Ad Spend (ROAS):
Understanding Digital Marketing ROI
Return on Investment (ROI) is the most critical metric for any digital marketing campaign. It measures the profit or loss generated relative to the amount of money invested. Unlike ROAS (Return on Ad Spend), which only looks at gross revenue, ROI accounts for the total cost of the endeavor, providing a true picture of business growth.
The ROI Formula
The standard formula used by this calculator is:
ROI = ((Total Revenue – Total Investment) / Total Investment) x 100
Key Metrics Explained
Net Profit: This is your bottom-line gain. If you spend $1,000 and make $3,000, your net profit is $2,000.
ROI Percentage: This shows the efficiency of your investment. A 100% ROI means you doubled your money.
ROAS: This stands for Return on Ad Spend. It is calculated as Revenue / Investment. A ROAS of 5:1 means for every $1 spent, you generated $5 in revenue.
Real-World Example
Scenario: An e-commerce brand spends $2,500 on Facebook Ads and $500 on a graphic designer (Total Investment: $3,000). The campaign generates $12,000 in sales.
Net Profit: $12,000 – $3,000 = $9,000
ROI: ($9,000 / $3,000) x 100 = 300%
ROAS: $12,000 / $3,000 = 4.0x
What is a "Good" ROI?
While "good" is subjective, a 5:1 ratio (400% ROI) is considered strong for most industries. A 2:1 ratio is often the break-even point when considering product margins, shipping, and taxes. High-growth companies often aim for 10:1 or higher in established channels like Email Marketing or SEO.
function calculateDigitalROI() {
var investment = parseFloat(document.getElementById("totalInvestment").value);
var revenue = parseFloat(document.getElementById("totalRevenue").value);
var resultBox = document.getElementById("calc-result-box");
if (isNaN(investment) || isNaN(revenue) || investment <= 0) {
alert("Please enter valid positive numbers for both fields. Investment must be greater than zero.");
resultBox.style.display = "none";
return;
}
var netProfit = revenue – investment;
var roi = (netProfit / investment) * 100;
var roas = revenue / investment;
document.getElementById("roiResult").innerHTML = roi.toFixed(2) + "%";
document.getElementById("profitResult").innerHTML = "$" + netProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("roasResult").innerHTML = roas.toFixed(2) + "x";
resultBox.style.display = "block";
resultBox.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}