Online Advertising ROI Calculator

How to Use the Calculator – Step-by-Step

1. Enter Total Revenue
   Input the full revenue earned from your digital campaigns during a given period. 
2. Enter Total Costs
   Add your ad spend, plus any supporting costs—such as design, tools, team time, or agency retainers. 
3. Click ‘Calculate’
   See your Net Profit and ROI (%) instantly and use the data to fine-tune your strategy. 

Tip: Always calculate ROI after including all relevant costs, not just ad spend, to avoid overestimating your returns.

Understanding Online Ad ROI

ROI (Return on Investment) tells you how much profit you’re generating for every ₹1 spent. It’s one of the most critical business metrics for evaluating the overall success of any paid marketing effort.

Formula Recap:

ROI (%) = [(Total Revenue – Total Costs) ÷ Total Costs] × 100

Benchmarks for Advertising ROI

Note: A 100% ROI means you’re doubling your investment. Adjust targets based on customer lifetime value and margin to optimize profitability.

Practical Example

Scenario:

• Total Revenue = ₹6,00,000 
• Total Costs = ₹2,50,000 

Calculation:

Net Profit = ₹6,00,000 – ₹2,50,000 = ₹3,50,000

ROI = (₹3,50,000 ÷ ₹2,50,000) × 100 = 140%

Interpretation:

Your campaign delivered a 140% ROI—indicating strong profitability. For every ₹1 spent, you’re earning ₹2.40 in return.

Tips to Improve Your Ad ROI

• Refine Targeting: Show ads to the most likely converters. 
• Cut Inefficiencies: Eliminate low-performing ad groups or channels to optimize your marketing strategy. 
• Enhance Funnel Performance: Optimise your landing pages and checkout flow. 
• Retarget Warm Leads: Remarketing typically yields a higher return on investment (ROI). 
• Monitor Regularly: Evaluate ROI on a weekly or monthly basis to adjust paid media spending in real-time.