What is Social Media Ad ROI Calculator?
Marketing math should not require a spreadsheet every time someone asks โwas Meta worth it this month?โ Return on ad spend (ROAS) and return on investment (ROI) are the basic lensesโone is a ratio people quote in meetings, the other translates into percent gain or loss on dollars risked. Cost per conversion adds another lens when your funnel is volume-based.
This calculator keeps the definitions visible so you do not mix up numerator and denominator when you are in a hurry.
Formula
ROAS = Revenue รท Ad spend ROI % = ((Revenue โ Ad spend) รท Ad spend) ร 100 CPA = Ad spend รท Conversions (if conversions > 0)
Formula Explained
These formulas assume revenue and spend line up to the same time window and attribution story. If your business has long sales cycles, your marketing team may track blended models insteadโstill useful as a starting point.
Example
Spend $5,000; attributed revenue $18,500; 142 purchases. ROAS โ 3.7ร, ROI โ 270% on spend, CPA โ $35.21 per purchaseโthen ask whether margin supports that CPA.
Tips & Best Practices
- โSeparate brand vs. prospecting when you canโthey behave differently.
- โWatch incrementality tests when someone demands โprove it.โ
Common Use Cases
- โขMonthly paid social retros for lean teams
- โขAgency slide decks that need clean definitions