| Scenario | Spend | Impressions | Clicks | Conversions | AOV | ROAS | ROI |
|---|---|---|---|---|---|---|---|
| Baseline | $1,200 | 85,000 | 1,900 | 95 | $48 | 3.80x | 58.33% |
| Improved Conversion Rate | $1,200 | 85,000 | 1,900 | 120 | $48 | 4.80x | 102.50% |
| Higher Costs | $1,200 | 85,000 | 1,900 | 95 | $48 | 3.80x | 38.33% |
- CTR = Clicks ÷ Impressions
- CPC = Ad Spend ÷ Clicks
- CPM = (Ad Spend ÷ Impressions) × 1,000
- Conversion Rate = Conversions ÷ Clicks
- CPA = Ad Spend ÷ Conversions
- Credited Revenue = Conversions × AOV × (1 − Refund Rate) × LTV Multiplier × Attribution Credit
- Gross Profit = Credited Revenue × Gross Margin
- Net Profit = Gross Profit − Ad Spend − Other Costs
- ROAS = Credited Revenue ÷ Ad Spend
- ROI = Net Profit ÷ Ad Spend
- Break-even ROAS ≈ 1 ÷ Gross Margin
- Enter your spend, impressions, clicks, and conversions.
- Add your average order value and gross margin percentage.
- Adjust refunds, LTV multiplier, and attribution credit if needed.
- Include any fixed costs tied to running the campaigns.
- Press Calculate ROI to see results above the form.
- Use CSV or PDF export to share the report.
1) What is the difference between ROI and ROAS?
ROAS compares revenue to ad spend. ROI uses profit after margin, ad spend, and other costs. A campaign can have strong ROAS but weak ROI if margins are low or costs are high.
2) Which revenue should I enter for AOV?
Use the average value of an attributed conversion. For lead generation, use your average revenue per lead or expected deal value multiplied by close rate, to keep calculations realistic.
3) How do refunds and returns affect ROI?
Refunds reduce credited revenue and profit. If your return rate changes by season or product type, update this input regularly to avoid overestimating performance and scaling too aggressively.
4) What gross margin should I use?
Use margin after cost of goods and direct fulfillment costs. If you are uncertain, start with a conservative estimate, then refine using real bookkeeping numbers for a better break-even target.
5) What does the LTV multiplier mean?
It estimates additional revenue beyond the first purchase. If customers often buy again, set it above 1. If you only track first purchase revenue, keep it at 1 to stay cautious.
6) How do I use attribution credit?
If multiple channels contribute, you may not want to credit 100% of revenue to one campaign. Use 50–80% as a starting point and align it with your attribution model and analytics setup.
7) What is a good break-even ROAS?
Break-even depends on gross margin. A 50% margin implies about 2.0x break-even ROAS. If you have extra fixed costs, you may need a higher ROAS to remain profitable.
8) How can I improve ROI quickly?
Test creative to raise CTR, improve landing pages to raise conversion rate, and increase AOV with bundles or upsells. Also watch margin and refunds, because they can erase gains from better ads.