with Faisal TusherAnalytics · ROI
Marketing ROI
ROAS tells you revenue per unit spent; ROI tells you whether the business made money. Management decisions need the second.
Try the interactive tool 
The building blocks
What goes into Marketing ROI
Marketing ROI Calculator
How I do it
The process
- 1
Costs
All marketing costs.
- 2
Revenue
Attributed/incremental.
- 3
Margin
Gross profit.
- 4
ROI
(profit − cost) ÷ cost.
Principles I follow
- Calculate break-even ROAS before setting targets.
- Include all costs (media, fees, creative).
- Report ROI alongside ROAS.
Measurement
The numbers I watch
ROI
(gross profit − marketing cost) ÷ marketing cost
Profitability.
Break-even ROAS
1 ÷ gross margin
Minimum viable ROAS.
Tools I use
- LSGoogle Looker Studio
- G4Google Analytics (GA4)
What you get
- ROI model
- Break-even targets
ROAS 3 but losing money
Margin is 25%.
Break-even ROAS is 4 — raise AOV or cut inefficient spend.
Illustrative exampleIs high ROAS always good?
Very high ROAS can mean under-investment — you may be leaving profitable growth unbought.
Related
Continue exploring
- ROAS CalculatorCalculate ROAS from revenue and ad spend, compare with break-even ROAS from your margin, and see profit after ad cost.Tools
- Campaign Break-even CalculatorFree break-even calculator: find the maximum CPA and minimum ROAS a campaign can afford, and the sales needed to break even.Tools
- AttributionMarketing attribution explained: last click, first click, linear, time decay, position-based and data-driven models, with an interactive model comparator.Analytics
- KPI FrameworkA marketing KPI framework: objectives, outcome KPIs, driver metrics and diagnostics, targets and review cadence — with an interactive KPI tree.Analytics