Google Ads ROI Calculator
Marketing ToolsTrue ad ROI once COGS and management fees are counted, not just spend against revenue.
What the delivered orders actually cost you.
The cost most ROI calculations quietly leave out.
Revenue-based ROI
53.85%
Net profit ₹1,75,000
(revenue − total cost) ÷ total cost × 100
- Total cost
- ₹3,25,000
- ad spend + COGS + management fee
- ROAS
- 5x
- revenue ÷ ad spend
- Gross profit
- ₹3,00,000
- revenue − COGS
- Net profit
- ₹1,75,000
- revenue − total cost
- Cost per conversion
- ₹1,625
- total cost ÷ conversions
- Profit per conversion
- ₹875
- net profit ÷ conversions
ROAS and ROI answer different questions. ROAS is 5x, which sounds healthy, but ROI on total cost is 53.85% — that is the figure that tells you whether the account is worth running.
How this is calculated
total cost = ad spend + cost of goods + management fee revenue-based ROI = (revenue - total cost) / total cost x 100 profit-based ROI = (gross profit - ad spend - fee) / total cost x 100
How it works
ROI compares what you made to what the whole exercise cost. The word 'whole' is where most calculations go wrong: they compare revenue to ad spend and stop, which ignores the cost of actually delivering the orders and the fee paid to whoever ran the account.
Include all three and the picture changes. A campaign spending ₹1,00,000 to generate ₹5,00,000 looks like a 5x return. Subtract ₹2,00,000 of goods and a ₹25,000 management fee and the real ROI on total cost is 54% — still good, but a different conversation from 400%.
The revenue-based and profit-based definitions give different numbers, and most calculators silently pick one. Both are shown here so you can see the gap, and so you know which one you are quoting when someone asks.
Worked example
₹1,00,000 ad spend, ₹5,00,000 revenue, ₹2,00,000 COGS, ₹25,000 agency fee
- total cost = 100000 + 200000 + 25000 = 325000
- ROAS = 500000 / 100000 = 5x
- net profit = 500000 - 325000 = 175000
- ROI = 175000 / 325000 x 100
ROAS 5x, but ROI on total cost is 53.85%
How to use it
- Enter your ad spend and the revenue it generated.
- Add the cost of goods sold on that revenue, and any agency or management fee for the period.
- Enter your conversion count to see cost and profit per conversion.
- Switch between revenue-based and profit-based ROI to see how much the definition changes the headline.
What this tool does not do
- It measures a single period. Ads that generate repeat customers look worse here than they are — use the Marketing ROI calculator for lifetime value.
- It relies on platform-attributed revenue, which is usually generous.
- It does not account for returns, refunds or bad debt.
Frequently asked questions
How do you calculate Google Ads ROI?
Subtract total cost from revenue, divide by total cost, and multiply by 100. Total cost should include ad spend, the cost of goods sold, and any management fee — not ad spend alone.
What is the difference between ROI and ROAS?
ROAS is revenue divided by ad spend. ROI is profit divided by total cost. ROAS will always look better because it ignores what the orders cost you to fulfil.
What counts as a good ROI on ads?
Anything above 0% is technically profitable on the costs entered, but it also has to cover overheads, salaries and rent. Most businesses want ROI comfortably into three figures before scaling spend.
Should I include the agency fee in my ROI?
Yes. It is a real cost of running the channel. Leaving it out is the most common way an underperforming account looks acceptable on a report.
Why is my ROI negative when ROAS looks fine?
Because ROAS ignores the cost of goods. At a thin margin, a campaign can return several times its ad spend in revenue and still lose money once fulfilment is counted.
Should ROI use revenue or profit?
Profit-based is the more honest figure for a business decision; revenue-based is what most marketing reports quote. Know which one is on the slide before agreeing to a budget.
Does this work for Meta or LinkedIn ads?
Yes. The arithmetic is identical for any paid channel — only the source of the spend and revenue figures changes.
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Last updated 3 September 2026.