Many online businesses are keen to know about their potential online advertising ROI before investing their money into any ad campaign.
This is actually important because it gives the marketer an idea of how much their ROI would be.
Advertising return on investment calculator helps marketers have more precise information about their potential profit on ad campaigns.
This return on Ad Spend (ROAS) calculator serve the same purpose for both Facebook ads and Google Ads.
We built an ROI calculator to make things easy for businesses and individual marketers to calculate the potential ROI of their advertising campaigns.
To calculate your ROI, use the ROI calculator below…
Advertising ROI Calculator
To calculate, please enter your figures, click calculate, and your result will be displayed in the section below the calculate button. You can play with the figures to see what increases and decreases to see how it will impact your ROI.
* Note: Return On Ad Spend (ROAS) is called Value/Cost in AdWords. ROI subtracts the cost of advertising, but ROAS does not.
Calculating ROI is pretty simple and straightforward mathematics. It is calculated in two ways and this will be demonstrated below.
The first is this:
As seen above in the first ROI formula, calculating ROI is simply taking the net return on investment and dividing it by the cost of investment and them multiplying it by 100%.
For a digital marketer, the net return on investment is equal to the total sales revenue derived from an advertising campaign while the cost of investment will be the total cost of advertising (Total Ad cost).
Once the division is done, then it will be multiplied by 100% to get the actual advertising ROI.
The second is this:
In the second ROI formula, the final value of the investment is subtracted from the initial value of an investment and then divided by the cost of investment then multiplied by 100% to arrive at the ROI.
This will also work perfectly for online businesses when trying to determine their potential ROI on Ad campaigns.
The advertising ROI calculator helps will help you allocate your ad budget more accurately once you are able to understand what value each campaign is able to deliver.
This is just one reason among many why you should use this calculator before starting your ad campaign.
We hope this post will help online marketers calculate their advertising ROI and determine if their investment will be profitable before investing their money.
In any case, we will be happy to hear about your experience with the ROI calculator we have provided for you guys. Let us also know how we can improve this post and calculator.