How to calculate ROAS?

sumaiyakhatun26 · Post by **sumaiyakhatun26** » Thu Jan 30, 2025 5:38 am

We calculate the ROAS value using a simple formula:

ROAS = Advertising Revenue / Advertising Cost * 100

This way we will present the result as a percentage. For example:

2000 PLN / 1000 PLN * 100 = 200%

We can also skip the multiplication by 100 and thus present ROAS numerically.

For example:

2000 PLN / 1000 PLN = 2

What is ROI?
ROI (Return On Investment) is the return on investment.

In this case, any marketing activity can be such an investment. Advertisements, netherlands rcs data self-promotion, projects, and so on. Interestingly, ROI can be used not only to measure individual activities, but also the overall ones, in the context of analyzing the financial situation of the company.

The ROI indicator takes into account all costs related to the analyzed activity. This includes employee rates, advertising costs and all other additional expenses for a given project.

Thanks to its functionality, ROI allows us to determine profitability, in other words – the return on investment. It shows the actual net profits from the expenditure on the activities carried out and gives a clear picture of whether they translate into profit or maybe in reality bring losses.