What is Social Media Ad ROI Calculator?
How It Works
Plug in total spend for the period, revenue you are willing to attribute to that spend, and optionally conversions if you want a back-of-envelope CPA. We compute ROAS as revenue over spend, ROI as profit over spend in percent terms, and CPA as spend divided by conversions when you gave a conversion count.
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