Revenue Compared to Advertising Cost
Compare revenue wey you attribute to adverts with advert spending and margin.
Your numbers
ROAS
Attribution na your assumption; e no prove extra sales caused by adverts. Costs outside margin wey you enter no dey included.
Compare scenarios
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Formula
Use ROAS = R/A and break-even ROAS = 1/m. R na attributed revenue, A na advertising spend, and m na pre-ad contribution-margin fraction. Modeled contribution after advertising na Rm−A.
Compare revenue wey you attribute to adverts with advert spending and margin.
Example wey show the calculation
- Revenue wey you attribute to adverts
- 10000
- Money wey you spend for adverts
- 2000
- Contribution margin before adverts (%)
- 40
- ROAS
- 5 ×
- Contribution wey remain after adverts
- 2,000
- ROAS wey cover the advertising cost
- 2.5 ×
Where e fit work and limits
Attribution na your assumption; e no prove extra sales caused by adverts. Costs outside margin wey you enter no dey included.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: b1552fc60d6d · Example don get check: