Free tool for marketing leaders

Ad Spend ROI Calculator

This ad spend ROI calculator shows how much revenue each dollar or pound of ad spend brings back, then which lever would grow it fastest. Start below.

$10,000
200
5.0%
$3,000
Ad spend ROI
200%
net return on ad spend
Revenue from ads$30,000
Cost per customer$1,000
Which lever lifts ROI fastest

See what a 10% gain on each lever does to your ROI.

Hit a revenue target

Pick a monthly revenue target. See what each lever would need to become on its own.

$
    See your lever breakdown and target

    Unlock the lever breakdown and revenue plan by email.

    Templates That Turn Ad Leads Into Revenue

    Ad spend only pays off when leads become signed deals. The faster a proposal or quote follows the first call, the more of those leads you keep. Start from one of these templates and reply the same day.

    PPC Proposal Template preview
    Proposal

    PPC Proposal Template

    Media Buying Proposal Template preview
    Proposal

    Media Buying Proposal Template

    Digital Marketing Campaign Performance Report preview
    Report

    Digital Marketing Campaign Performance Report

    What Is Ad Spend ROI?

    Ad spend ROI shows how much your ads return beyond what they cost. The ad spend ROI formula is revenue from ads minus ad spend, divided by ad spend, multiplied by 100. A result of 200% means every $1 spent brought back $3.

    ROAS is a close cousin. It divides revenue by spend without subtracting the cost, so a 200% ROI equals a ROAS of 3. Both tell you whether ads are paying their way.

    How to Use the Ad Spend ROI Calculator

    Three steps and under a minute.

    1

    Pull four numbers

    Take spend, leads, conversion and deal value from the same month and the same campaigns.

    2

    Enter them in the calculator

    Slide each input to your figure. ROI, revenue and cost per customer recalculate straight away.

    3

    Find your best lever

    Unlock the lever breakdown to see which change would lift ROI most, and what it takes to hit your revenue target.

    How to Calculate Ad Spend ROI: The Four Inputs

    Most errors come from counting leads or revenue from the wrong campaigns.

    1. Monthly ad spendTotal paid media spend, including platform fees. Leave out agency fees unless you want them in the ROI.
    2. Leads from adsLeads from paid campaigns only. Remove duplicates and obvious spam before you count.
    3. Lead to customer rateCustomers won divided by ad leads, over a period long enough for deals to close.
    4. Average deal valueFirst-year revenue per new customer after discounts. Use the median if a few deals were unusually large.

    An Ad Spend ROI Example

    A team spends $10,000 a month and gets 200 leads. At a 5% lead to customer rate, that is 10 customers worth $3,000 each, or $30,000 in revenue.

    That is a 200% ROI, or a ROAS of 3. Lift conversion by 10% and ROI rises to 230%, with no extra spend. Conversion is often the cheapest lever to pull.

    Which ROI Lever to Pull First

    On paper the four levers move ROI by similar amounts. In practice, two are far cheaper to move.

    Slower to move

    More leads

    Needs new audiences, creative or channels, and each test takes weeks of spend to read clearly.

    Slower to move

    Lower spend

    Cutting budget can lift ROI on paper while shrinking the revenue you need.

    Sales controls it

    Higher conversion

    Shaped by how fast leads hear back and how strong the first proposal is.

    Sales controls it

    Bigger deals

    Comes from clear pricing options and proposals that show the value. That is why marketing teams and sales start here.

    How to Turn More Leads Into Customers

    Ad leads rarely go cold because of the ad. They go cold while waiting for a reply.

    1

    Reply within the hour

    Interest is highest when the form is submitted. A fast, personal reply turns more ad leads into first calls than any later follow-up.

    2

    Send a proposal after the first call

    Momentum fades in the gap after the call. A library of services and pricing makes same-day proposals realistic.

    3

    Match the proposal to the ad

    Use the same promise the lead clicked on, then send it with a clear proposal email.

    How to Lower Your Cost per Customer

    Cost per customer falls when fewer good leads slip away after the first call.

    Qualify on the first call

    Ask about budget, timeline and authority on the first call. Proposals sent to unqualified leads waste time that could go to buyers ready to sign.

    Follow up on buying signals

    A lead who opens your proposal twice is telling you something. Learn to spot buying signals in sales.

    Close the loop with marketing

    Share which campaigns produced customers, not just leads, so budget moves to what actually sells.

    Common Ad ROI Mistakes

    Five habits that make ad ROI look wrong.

    Mistake
    Fix
    Counting leads instead of customers
    Measure ROI on closed revenue
    Measuring before deals can close
    Wait one full sales cycle
    Mixing brand and paid campaigns
    Track paid campaigns on their own
    Ignoring platform and agency fees
    Decide which costs count, once
    Judging a campaign on one week
    Compare full months side by side

    Both teams should agree on these numbers. Start with sales and marketing alignment.

    Faster Documents, Better Ad ROI

    Once the ad spend ROI calculator shows where returns leak, follow the lead after the form is filled. Many go cold while a proposal is drafted, formatted and chased. Proposal.biz removes most of that wait.

    • Proposals from one promptPaste your website URL once. Proposal.biz saves your services and pricing, so a proposal for a new lead takes minutes, not days.
    • Know which leads are warmDocument analytics reveal which leads opened your proposal and how far they read.
    • Quote, sign and get paidClients approve the quote and pay in the same place. Use it to create and send quotes.
    Turn leads into deals, free

    Frequently Asked Questions

    Straight answers on measuring return from paid ads

    Ad spend ROI equals revenue from ads minus ad spend, divided by ad spend, multiplied by 100. That gives your net return as a percentage of what you spent.
    It depends on your margins and sales cycle. A positive ROI means ads return more than they cost. Compare campaigns against each other and against your own trend over time.
    ROAS divides revenue by spend. ROI subtracts the spend first, so it shows the net return.
    Leads only become revenue after deals close. Slow follow-up and weak proposals lose leads between the first call and the signature.
    Include them if you want the true cost of acquiring customers through ads. Leave them out to compare platforms fairly.
    Wait at least one full sales cycle after the campaign starts. Measuring sooner counts the spend but misses deals still in progress, which makes ROI look worse than it is.
    Yes. The core calculation needs no sign-up. Your email unlocks the lever breakdown and the revenue planner.

    Turn More Ad Leads Into Signed Deals

    Run the ad spend ROI calculator each month, then reply faster, send proposals sooner and follow up when leads are reading.

    Free forever.
    No credit card.