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How to calculate ROI – is it the best KPI for your marketing campaigns?

Pedro Dávila

March 17, 2025
Que es el ROI

Do you want to improve the performance of your campaigns?

We give you a free professional template to calculate these key KPIs and optimize your advertising investment. Just leave your data and download it:

What is ROI and how is it calculated?

ROI ( Return on Investment) measures the profit obtained in relation to the cost of the investment.

Interactive ROI, ROAS, and POAS Calculator

🚀 ROI – ROAS – POAS Calculator

Optimize your ad spend with accurate metrics and personalized recommendations

🎯 Analysis Type
💰 Campaign Ad Spend
📈 Revenue Generated by Campaign
💸 Campaign Operating Costs
ROI (Return on Investment)
166.67%
ROI measures the return on your campaign’s investment. It tells you how much you earned in relation to what you invested, considering all costs.
🎉 Excellent! You’re getting $2.67 for every $1 invested. Your campaign is highly profitable.
ROAS (Return on Ad Spend)
$4.00
ROAS measures how much revenue you generate for every dollar spent on campaign advertising. It’s ideal for evaluating the efficiency of your ads.
🎯 Exceptional! You generate $4.00 in revenue for every $1 in advertising. Keep this strategy.
POAS (Profit on Ad Spend)
$3.50
👑
POAS is the most accurate metric as it considers your campaign’s real net profit after all operating costs.
💰 Excellent! You get $3.50 in real profit for every $1 in advertising. Very profitable!
Net Profit
$2,500.00
Net Profit is your campaign’s real profit after subtracting all costs. It’s the amount of money that actually stays in your pocket.
💰 Excellent! You have a net profit of $2,500.00, which represents a very healthy margin.
💡 Personalized Recommendation
🏆 POAS is your star metric with $3.50 in net profit for every advertising dollar. This is the most reliable metric for making investment decisions, as it reflects your real profitability after all costs.

Want to maximize your results?

Our experts can help you create a personalized strategy to optimize your ad spend and significantly increase your ROI.

📱 Schedule a Consultation

ROI formula:

👉ROI=((Revenues-Costs)/Costs)×100

Example: If you invest $1,000 in advertising and generate $5,000 in revenue:

👉ROI=((5000−1000)/1000)×100 = 400%

This means that, for every dollar invested, you made a $4 profit.

What is ROAS and how is it calculated?

ROAS ( Return on Ad Spend) measures the effectiveness of a specific advertising campaign.

ROAS formula:

👉ROAS=Revenues generated by advertising / Cost of advertising

Example: If you spend $500 on ads and generate $2,000 in sales.

👉ROAS=2000 / 500 = 4

This means that for every $1 invested in advertising, you get back $4 in revenue.

What is POAS and why is it more accurate?

POAS (Profit on Ad Spend) goes one step further than ROAS, it considers total costs and not only revenues.

POAS formula:

👉POAS=Net Profit / Advertising Cost

Example: If you invest $500 in advertising, you generate $1,000 in profit. POAS= 1000 / 500 = 2. This means that for every $1 invested in advertising, you made a $2 net profit.

Do you have doubts about how to analyze metrics in your business with campaigns? Contact us and optimize your digital strategy today.

Pedro Dávila

Me especializo en estrategias digitales que convierten, diseñando campañas efectivas que conectan marcas con su audiencia y potencian su crecimiento.