Step-by-step walkthrough

ROI / ROAS Calculator Guide

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.

Before you start

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.

  • roi
  • roas
  • campaign performance

Detailed procedure

  1. Step 1

    Enter the upfront spend and any ongoing or maintenance costs that belong to the initiative.

  2. Step 2

    Add the revenue (or savings) generated and the elapsed time in years (fractions allowed).

  3. Step 3

    Review spend, profit, ROI, ROAS, revenue multiple, and the annualized return.

Teaching & troubleshooting tips

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.

What if revenue is zero or negative?

Zero revenue produces −100% ROI and 0× ROAS. Negative revenue highlights losses for fast post-mortems.

Next steps