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ROI vs ROAS — How to Measure Ad Effectiveness?

Difference between ROI and ROAS, when to use each. Real examples and formulas.

Reading time: 1 min Updated: 25.04.2026
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ROI vs ROAS

Both measure marketing effectiveness, different angles.

ROAS — Return on Ad Spend

Formula: ROAS = Revenue from ad ÷ Ad spend

Example: \$1000 ad spend, \$5000 revenue → ROAS = 5x

ROI — Return on Investment

Formula: ROI = (Profit − Investment) ÷ Investment × 100%

Example: \$1000 ad + \$2000 production = \$3000 total. \$5000 revenue, profit \$2000. ROI = 66.7%

When to use what

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