ROAS vs ROI Calculator
See the real story behind your ad performance. Enter your numbers and discover whether your campaigns are actually profitable.
What is ROAS?
Return on Ad Spend measures how much revenue you earn for every dollar spent on advertising.
ROAS = Revenue ÷ Ad Spend
A 4x ROAS means you earn $4 in revenue for every $1 spent on ads. Sounds great — but it doesn't account for product costs, shipping, returns, or agency fees.
What is ROI?
Return on Investment measures your actual profit after all costs are deducted.
ROI = (Profit ÷ Total Investment) × 100
ROI tells you whether you're actually making money. A campaign with 5x ROAS can still have negative ROI if your margins are thin.
ROAS lies. ROI tells the truth.
Most agencies report ROAS because it always looks impressive. A 4x ROAS sounds like a home run — until you factor in product costs, shipping, returns, and agency fees and realize you're actually losing money.
At ROIlabs, we optimize for ROI because that's what actually hits your bank account. Our clients know exactly how much profit their ad spend generates.