Advertising ROI Calculator
Calculate the true ROI of an ad campaign from the gross profit it generated versus media and production costs.
Your inputs
Results
Advertising ROI
33.33%
- Gross profit generated
- $8,000.00
- Net profit after campaign costs
- $2,000.00
✓Exact calculation — rounded only for display
What this calculator does
Advertising ROI looks at profit, not just revenue, and includes all campaign costs such as creative and agency fees.
Formula and method
Worked example
Calculated by this tool with its default inputs:
Inputs
- Revenue from the campaign: 20000 (any currency)
- Gross margin on that revenue: 40 %
- Media / ad spend: 5000 (any currency)
- Other campaign costs (creative, tools, agency): 1000 (any currency)
Results
- Advertising ROI: 33.33%
- Gross profit generated: 8,000
- Net profit after campaign costs: 2,000
How to read the results
A positive ROI means the campaign more than paid for itself on a gross-profit basis.
Assumptions and limitations
- Long-term brand effects and repeat purchases are not captured.
Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.
Questions
Why use gross profit rather than revenue?
Revenue includes the cost of the goods sold, which the campaign did not earn as profit.
Methodology and verification
- Result type
- Exact mathematical calculation (rounded only for display)
- Formula version
- 1.0
- Automated verification
- 2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
- Editorial review
- Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.
Privacy
Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy