Marketing ROI Calculator

ROI measures the profitability of an investment as a percentage. It's calculated as (Revenue - Cost) / Cost × 100. For example, if you spend $100 and earn $150, your ROI is 50%.

ROAS measures revenue generated for every dollar spent on advertising. It's calculated as Revenue / Ad Spend. A ROAS of 3:1 means you earn $3 for every $1 spent on ads.

ROI measures net profit (revenue minus costs) as a percentage of investment, while ROAS measures gross revenue as a ratio to ad spend. ROI accounts for profitability, ROAS focuses on revenue generation.

CAC is the average cost to acquire one customer, calculated as Total Ad Spend / Number of Conversions. It helps determine if you're spending efficiently to gain customers.

A "good" ROAS varies by industry and profit margins. Generally, a 4:1 ratio ($4 revenue per $1 spent) is considered healthy. However, businesses with high margins might profit at 2:1, while low-margin businesses might need 8:1 or higher.

CTR measures the percentage of people who click your ad after seeing it, calculated as (Clicks / Impressions) × 100. Higher CTR indicates more engaging ads.

CPM is the cost per 1,000 impressions. It's calculated as (Ad Spend / Impressions) × 1,000. It's useful for comparing the cost-effectiveness of different advertising channels.

CPC is the average amount you pay for each click on your ads, calculated as Ad Spend / Clicks. Lower CPC means more efficient ad spending.

Break-Even ROAS is the minimum ROAS needed to cover your costs without profit or loss. If your profit margin is 40%, your break-even ROAS is 2.5:1 (1 / 0.4).

Use a privacy-focused analytics tool like Swetrix to track conversions, revenue, and campaign performance through UTM parameters. This gives you accurate data while respecting user privacy.