2,000 is the example result. Read it using the units and relationship stated below.
ROAS to Profit uses attributed revenue, ad spend, cogs (%).
Separating campaign efficiency from business profit
For roas to profit, the relationship is Result = [Attributed revenue] − [Ad spend] − [Attributed revenue] × [COGS (%)] ÷ 100. The amount depends on the supplied attributed revenue, ad spend, rather than a live market price or a value imported from another record. Campaign ratios depend on the event being counted. A click, a submitted form, a qualified opportunity and a paying customer are separate outcomes. Combine spend and events from the same campaign window before comparing acquisition costs.
What the model includes
Result = [Attributed revenue] − [Ad spend] − [Attributed revenue] × [COGS (%)] ÷ 100 Attribution can credit revenue to several channels. Use one attribution definition for the comparison and keep refunds or cancelled orders consistent. An efficient advertising ratio can coexist with weak contribution after fulfilment. Read the result beside lead quality and the sales outcome. A lower cost is useful only when the counted event still represents the objective the campaign was built to achieve.
Example with the supplied inputs
Attributed revenue: 5000; Ad spend: 1500; COGS (%): 30. Result: 2,000. The values are illustrative.
Compare one changed input
Attributed revenue changes from 5000 to 5500. The result becomes 2,350. All other inputs remain fixed.
Calculation rule
Result = [Attributed revenue] − [Ad spend] − [Attributed revenue] × [COGS (%)] ÷ 100
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Attributed revenue | 5000 | Use attributed revenue on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| Ad spend | 1500 | Use ad spend on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| COGS (%) | 30 | Enter cogs (%) on the percentage scale used in the formula (20 means 20%, not 0.20). Keep its base and reporting period consistent with the other inputs. |
Output: 2,000 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Attributed revenue, Ad spend, COGS (%). Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Attributed revenue on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 2,000.
Change Attributed revenue from 5000 to 5500 while keeping every other value fixed. The result becomes 2,350. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.