BizJourney
Home › Formulas › Return on ad spend

How to calculate Return on ad spend

The Return on ad spend formula, with plain worked examples you can check yourself.

Return on ad spend = R ÷ A

The result is a number in ×.

Worked examples

R = 1500 · A = 300Return on ad spend = 5×
R = 1200 · A = 200Return on ad spend = 6×
R = 1500 · A = 500Return on ad spend = 3×

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Digital Marketing.

Related terms

Search engine optimizationInfluencer marketingPublic relationsWord of mouthContent marketingLanding page

Practice Return on ad spend with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →