Author
166 Tech team
Editorial review
Technical & SEO team
Updated
04.09.2026
In this article 8
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
- Ad campaign — ROAS
- Business health — ROI
- Marketing director report — ROAS
- Owner report — ROI
- Compare ad channels — ROAS
- Annual strategy — ROI
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