How ROI works
ROI (Return on Investment) shows investment effectiveness.
Formula
ROI = (Revenue - Spend) / Spend * 100%
Example
- You spent $1000 on advertising.
- Got $1500 revenue.
- Calculation: (1500 – 1000) / 1000 * 100% = 50% ROI.
How to interpret
- ROI > 0% — campaign is profitable.
- ROI = 0% — you broke even.
- ROI < 0% — losses.