ROI formula
ROI (%) = (Revenue − Investment) ÷ Investment × 100. A 100% ROI means you doubled the invested amount in net profit.
Example
You invested $1,000 in ads and generated $2,500 in sales attributed to the campaign: $1,500 profit and 150% ROI.
Watch out for attribution
ROI is only reliable if the revenue used is truly attributable to that specific campaign — mixing in organic or other-channel revenue artificially inflates the result.
Frequently asked questions
Can ROI be negative?
Yes — it means the campaign generated less return than it cost, resulting in a net loss.
Is ROI the same as ROAS?
No. ROAS (return on ad spend) is revenue ÷ investment (without subtracting the investment); ROI already accounts for net profit over the investment.
What revenue should I use?
Ideally only revenue tracked and attributed to that specific campaign (via UTM tags, conversion pixel, unique coupon, etc.).