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ROI Solver
Calculated Result
ROI = (revenue - spend) / spend
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Target Logic: ROI
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What is ROI?
ROI (Return on Investment) measures the net profitability of a campaign relative to its cost. Unlike ROAS which is revenue-based, ROI accounts for profit margins by subtracting spend from revenue before dividing — giving a true picture of business value created.
Worked Example
A campaign generates $50,000 in revenue and costs $10,000 in ad spend. ROI = ($50,000 − $10,000) ÷ $10,000 = 4.0 (or 400%). For every $1 invested, you earned $4 profit.
Related PERFORMANCE Metrics
CPA
CPA (Cost Per Action or Acquisition) tells you exactly how much you spend to get one customer to take a specific desired action — a purchase, a subscription, a lead form, etc. It's the most direct measure of campaign profitability.
Conversion Rate (CVR)
CVR (Conversion Rate) measures the percentage of clicks or visits that result in a desired action — like a purchase, sign-up, or form submission. It's a core indicator of landing page quality, UX, and offer relevance.
CPL
CPL (Cost Per Lead) measures how much you spend for each qualified lead generated — most commonly used in B2B, real estate, and service industries where the sales cycle is too long to measure direct purchase conversions.
Expert Insights
How do I improve my ROI?
Improving ROI requires a dual focus on quality and efficiency. For PERFORMANCE metrics, we recommend auditing your top-performing segments and re-allocating budget from underperforming areas to those with higher baseline ROI potential.
Is ROI a primary KPI?
While ROI is a critical indicator of regional performance, it should always be viewed alongside downstream metrics like ROI to ensure volume isn't coming at the expense of profitability.