Is ROAS the same as ROI?
ROAS reports revenue returned per $1 of spend, while ROI expresses net profit as a percentage of spend. Use both for marketing efficiency reviews.
Step-by-step walkthrough
Use this companion guide beside the interactive calculator to make sure you understand the “why” behind every click. Each section includes the classroom explanation, student-friendly language, and quick practice prompts.
Collect the data points listed below and double-check their units. Keeping an organized “givens” list is one of the fastest ways to reduce math errors and impress exam graders.
Step 1
Enter the upfront spend and any ongoing or maintenance costs that belong to the initiative.
Step 2
Add the revenue (or savings) generated and the elapsed time in years (fractions allowed).
Step 3
Review spend, profit, ROI, ROAS, revenue multiple, and the annualized return.
ROAS reports revenue returned per $1 of spend, while ROI expresses net profit as a percentage of spend. Use both for marketing efficiency reviews.
Zero revenue produces −100% ROI and 0× ROAS. Negative revenue highlights losses for fast post-mortems.