Advertising ROI Calculator: Estimate Your Leads, Sales and ROAS
How much revenue could your advertising budget realistically produce?
Use this free advertising return calculator to estimate the leads, new customers and revenue your marketing investment could generate.
You don’t need to know every number—start with your best estimates, then adjust them to explore different scenarios.
ROAS Measures the Revenue Generated for Every Dollar Spent on Advertising.
ROAS = Revenue attributed to advertising ÷ Advertising spend × 100
For example, a 400% ROAS means you generated approximately $4 in revenue for every $1 spent on advertising.
Enter how much you currently spend—or are considering spending—on Google Ads, Facebook, Instagram, LinkedIn or other paid advertising.
Enter the average amount you spend to generate one inquiry, phone call or form submission.
Don't know it? Divide your advertising spend by the number of leads generated during the same period.
Example: $1,000 in ad spend ÷ 20 leads = $50 per lead.
Cost per lead can vary considerably based on your industry, location, competition, offer and the type of customer you want to reach. If you don't have reliable data yet, use the suggested starting estimate and adjust it later.
Enter the average revenue generated by one new customer, project or sale.
If customers purchase from you repeatedly, use a realistic estimate of what an average customer is worth during the first year. Be consistent: use the same definition of customer value every time you compare results.
Your Estimated Results
The calculator estimates:
- Leads generated
- Prospects successfully contacted
- New customers acquired
- Revenue generated
- Return on ad spend.
Estimated lead funnel:
31 leads → 9 prospect conversations → 5 new customers.
Try changing one number at a time. This will help you see whether your greatest opportunity is lowering your cost per lead, improving follow-up, closing more prospects or increasing the value of each customer.
Get More Than a Percentage
A calculator can show you what may be possible. It can’t tell you why leads aren’t converting or where your marketing funnel is losing opportunities.
Share your results with Mystique, and we’ll help you identify practical ways to improve lead quality, follow-up, conversion, and return.
Enter your spend and CPL above first, then try again.
How This Advertising Calculator Works
The calculator follows your lead funnel from advertising spend to estimated revenue.
Estimated leads
Monthly ad spend ÷ Average cost per lead
Prospects contacted
Estimated leads × Lead contact rate
New customers
Prospects contacted × Closing rate
Estimated revenue
New customers × Average customer value
Return on ad spend
Estimated revenue ÷ Monthly ad spend × 100
These calculations make it easier to see where revenue is being gained—or lost—between the first inquiry and the final sale.
Don’t Know
Your Marketing Numbers Yet?
That’s more common than you may think.
You can still use the calculator by entering reasonable estimates. Start conservatively and use the results to understand which numbers you need to begin tracking.
For a more accurate calculation, review the last 30 to 90 days of:
- Advertising spend
- Phone calls and form submissions
- Qualified leads
- Sales conversations
- New customers
- Revenue generated from those customers.
The longer you track these numbers consistently, the more useful your projections will become.
What Is a Good Return on Ad Spend?
There is no universal “good” ROAS.
A strong return for one business may be unprofitable for another. Your acceptable ROAS depends on your gross profit margin, operating expenses, repeat business, customer lifetime value and the cost of managing your campaigns.
For example, generating $4 in revenue for every $1 spent may look impressive. But the result is only profitable if the remaining $3 is enough to cover the cost of delivering the work, campaign management and overhead.
This is why ROAS should be treated as an important performance indicator—not a complete measure of business profitability.
ROAS vs ROI
What’s the Difference?
ROAS
"Did the advertising generate revenue?"
ROAS measures the revenue generated in relation to advertising spend.
ROI
"Did the business make money after expenses?"
ROI measures the profit generated after accounting for the broader costs required to produce that revenue.
Advertising ROI and ROAS Calculator FAQs
What does ROAS mean?
ROAS stands for return on ad spend. It compares the revenue attributed to an advertising campaign with the amount spent on that advertising.
A 500% ROAS means approximately $5 in revenue was generated for every $1 spent.
How do I calculate return on ad spend?
Divide the revenue attributed to your advertising by the advertising spend, then multiply the result by 100.
For example:
$5,000 in revenue ÷ $1,000 in ad spend × 100 = 500% ROAS.
Is ROAS the same as marketing ROI?
No. ROAS compares revenue with advertising spend. Marketing ROI considers profit and may include additional expenses such as campaign management, creative development, software, sales costs and the cost of delivering the product or service.
What is an average cost per lead?
Average cost per lead is your total advertising spend divided by the number of leads generated.
There is no reliable universal average. Costs vary significantly by industry, geography, competition, platform, service value and lead quality.
Your own historical performance is usually more useful than a broad industry benchmark.
What if I don’t know my cost per lead?
Use the suggested starting estimate and calculate several scenarios.
You can also look at your Google Ads, Meta Ads or other advertising account to find the number of recorded leads. Divide your spend by that number, but first confirm that lead tracking is working properly.
How do I estimate my closing rate?
Divide the number of new customers by the number of qualified prospects you spoke with.
If you spoke with 20 qualified prospects and five became customers, your closing rate was 25%.
Why does the calculator ask how many leads I contact?
Generating a lead does not create revenue by itself.
If leads aren’t answered quickly, followed up consistently or successfully reached, fewer will become customers. Improving your contact rate can sometimes increase sales without increasing your advertising budget.
Should I use the value of one sale or the lifetime value of a customer?
Use the measurement that best fits how you make business decisions.
For a project-based business, use the average project value. For a business with repeat purchases or recurring revenue, use a realistic customer value over a defined period, such as the first 12 months.
Always use the same approach when comparing campaigns.
Can I use this calculator for Google Ads and social media advertising?
Yes. The calculator can be used to evaluate Google Ads, Facebook and Instagram advertising, LinkedIn Ads or another lead-generation campaign, provided you can estimate the spend, leads and customers attributed to that campaign.
Are the calculator results guaranteed?
No. The results are planning estimates based on the numbers you enter.
Actual performance will depend on factors such as your targeting, offer, competitive environment, website, landing page, sales process, follow-up and ability to deliver the work.
Turn Your Estimate Into a Smarter Growth Plan
Not sure which part of your lead funnel is holding growth back?
Let’s look at your goals, your numbers and where the strongest opportunity may be.
We’ll focus on the one or two improvements most likely to make your marketing investment work harder.
Boldly Grow
Toronto brand strategy, website design, and growth agency helping small and medium businesses build stronger positioning, improve conversions, and generate consistent leads.
Tel: 416 441 2666
Toll-Free: 1 855 582 7263
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