Free calculator
ROI Calculator
The return on a campaign, a tool or a Shopify app, after your margin.
Inputs
Results
ROI
140%
$7,000 net return.
- Gross profit$12,000
- Net return$7,000
- ROAS4.00x
- Break-even revenue$8,333
Pricing a specific Shopify app? The dtcmvp SWAG example models an app's return from your own store data.
Formula
- Gross profit = revenue × gross margin
- Net return = gross profit − spend
- ROI = net return ÷ spend
- Break-even revenue = spend ÷ gross margin
FAQ
How do I calculate ROI?+
Take the profit an investment produced, subtract what it cost, and divide by the cost. Spending $1,000 to earn $3,000 of gross profit is a 200 percent ROI.
Why use margin instead of revenue?+
Revenue includes the cost of the products you sold. Measuring ROI on revenue makes a campaign look better than it was. Set margin to 100 percent if the return is already profit, such as hours saved.
What is the difference between ROI and ROAS?+
ROAS is revenue divided by ad spend and ignores product cost. ROI subtracts costs first. A 3x ROAS can be a negative ROI when margins are thin.
How do I work out the ROI of a Shopify app?+
Enter the app’s yearly cost as spend and the extra revenue it drives as revenue. For an app modelled on your own store data, see the dtcmvp SWAG example linked on this page.
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