What's the difference between ROI and ROAS?

ROI (Return on Investment) measures net profit as a percentage: (Revenue - Cost) ÷ Cost. ROAS (Return on Ad Spend) measures gross return as a multiplier: Revenue ÷ Cost. ROAS 4× equals ROI 300%—same performance, different numbers.

How do I convert ROI to ROAS?

Use the formula: ROAS = (ROI ÷ 100) + 1. For example, ROI 300% = ROAS (300 ÷ 100) + 1 = 4×. Or use our calculator above for instant conversion.

Why does advertising use ROAS instead of ROI?

ROAS became the standard in digital advertising because it's simpler (no subtraction) and always positive. It's easier to say '4× return' than '300% ROI'. Most ad platforms report ROAS natively.

What is a good ROI/ROAS?

It depends on your margins. Generally: ROI 300%+ (ROAS 4×+) is excellent, ROI 100-200% (ROAS 2-3×) is average. The key is whether your ROAS exceeds your break-even ROAS based on profit margins.

Can ROI be negative? Can ROAS be negative?

ROI can be negative (meaning you lost money). ROAS cannot be negative—the minimum is 0× (zero revenue). ROI -50% equals ROAS 0.5× (you got back half of what you spent).

What's the difference between ROI and ROAS?

ROI (Return on Investment) measures net profit as a percentage: (Revenue - Cost) ÷ Cost. ROAS (Return on Ad Spend) measures gross return as a multiplier: Revenue ÷ Cost. ROAS 4× equals ROI 300%—same performance, different numbers.

How do I convert ROI to ROAS?

Use the formula: ROAS = (ROI ÷ 100) + 1. For example, ROI 300% = ROAS (300 ÷ 100) + 1 = 4×. Or use our calculator above for instant conversion.

Why does advertising use ROAS instead of ROI?

ROAS became the standard in digital advertising because it's simpler (no subtraction) and always positive. It's easier to say '4× return' than '300% ROI'. Most ad platforms report ROAS natively.

What is a good ROI/ROAS?

It depends on your margins. Generally: ROI 300%+ (ROAS 4×+) is excellent, ROI 100-200% (ROAS 2-3×) is average. The key is whether your ROAS exceeds your break-even ROAS based on profit margins.

Can ROI be negative? Can ROAS be negative?

ROI can be negative (meaning you lost money). ROAS cannot be negative—the minimum is 0× (zero revenue). ROI -50% equals ROAS 0.5× (you got back half of what you spent).

ROAS Calculator

ROI to ROAS Calculator

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ROI to ROAS Calculator

ROI (Return on Investment)

Conversion Result

Good

ROI

300%

ROAS

4.00×

ROI 200-400% (ROAS 3-5×) — Above average. Well-optimized campaigns.

Quick Reference: ROI ↔ ROAS

ROI	ROAS	Meaning
-50%	0.5×	Lost half
0%	1×	Break-even point
100%	2×	Doubled money
200%	3×	Industry average
300%	4×	Good performance
400%	5×	Top performer
500%	6×	Excellent
900%	10×	Exceptional (rare)

ROI vs ROAS: What's the Difference?

These two metrics measure the same thing differently:

Aspect	ROI	ROAS
Formula	(Revenue - Cost) ÷ Cost	Revenue ÷ Cost
Measures	Net profit rate	Gross return multiplier
Format	Percentage (can be negative)	Multiplier (≥ 0)
Break-even	0%	1×
Common in	Finance, general business	Digital advertising

💡 Key Insight: ROAS 1× = ROI 0% = Break-even. Both mean you got back exactly what you spent.

When to Use ROI vs ROAS

Scenario	Use	Why
Reporting to Finance/CEO	ROI	"Our Q4 campaign achieved 280% ROI" — Finance speaks ROI
Google/Meta Ads Setup	ROAS	Ad platforms use ROAS natively (Target ROAS bidding)
Agency Client Reports	Both	Show ROAS for ads, ROI for business impact
Quick Profitability Check	Either	ROAS > 1× = ROI > 0% = Making money

Common Confusion

"My ROAS is 400%"

"My ROAS is 4× (or my ROI is 300%)"

ROAS uses multipliers (×), ROI uses percentages (%). 400% is ROI, not ROAS.

"ROAS and ROI are the same"

"They're related but different"

ROAS 4× = ROI 300%. The numbers are different even though they describe the same performance.

Conversion Formulas

ROI → ROAS

ROAS = (ROI ÷ 100) + 1

ROAS → ROI

ROI = (ROAS - 1) × 100

• ROI 300% → ROAS = (300 ÷ 100) + 1 = 4×

• ROAS 5× → ROI = (5 - 1) × 100 = 400%

💡 Easy to remember: ROAS 1× = ROI 0%, ROAS 2× = ROI 100%

Frequently Asked Questions

ℹ️ Note: This calculator uses the standard conversion formulas. ROI and ROAS measure the same underlying performance differently—neither is 'better', they're just different conventions.

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Want to Learn More About ROI vs ROAS?

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