The Official ABM - ROI Calculator
This is not AI -- it's much smarter than that.
Far too often, return on advertising spend (ROAS) and return on investment (ROI) are ‘casually calculated’ with textbook formulas and generic responses. Most calculations simply take an advertising investment and compare it with revenues from resulting new client acquisitions, with little or no consideration of contributing factors, multichannel attribution, long-term value and inflation.
While this calculator does not guarantee a precise accounting of every dollar invested, it does add a few layers of reality to the resulting equation. This is really important for managing expectations, regardless of how large or small your marketing budget may be.
ROI Calculator Insights
How to use the ROI calculator effectively
ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent specifically on advertising campaigns. ROI (Return on Investment), on the other hand, measures the overall profitability of an investment by factoring in all associated costs-not just ad spend. While ROAS provides a focused view of advertising efficiency, ROI offers a broader perspective on total business profitability.
This calculator enhances ROAS/ROI accuracy by using your actual campaign data and factoring in relevant costs and revenues. It streamlines complex calculations, reduces manual errors, and helps ensure that both direct and indirect marketing expenses are considered. This leads to more reliable and actionable performance insights for your marketing investments.
No, the calculator provides estimates based on the data you enter and industry-standard formulas. Actual financial outcomes can be influenced by many external factors-such as market conditions, consumer behavior, and operational changes-that are beyond the calculator’s scope. Use the results as a strategic guide, not as a financial guarantee.
Inflation can erode the real value of marketing returns by increasing costs (such as media buying, production, or services) while potentially reducing the purchasing power of generated revenue. To maintain accurate ROI analysis over time, it’s important to account for inflation’s effect on both expenses and revenue, ensuring your marketing investments deliver true value in current market conditions.