What ROI is considered good for paid traffic?
It depends on your margin and risk model. Most teams target positive ROI with enough buffer to absorb tracking variance and refunds.
ROI Calculator Guide
Use this guide to interpret ROI metrics quickly and decide whether to scale, hold, or cut traffic.
Core formulas
1. Profit = Revenue - Cost
2. ROI (%) = (Profit / Cost) x 100
3. ROAS = Revenue / Cost
4. Break-even CPA = Revenue / Conversions
How to read outcomes
1. ROI above 0% means profitable traffic.
2. Low ROAS with positive ROI can still fail after fixed costs.
3. Break-even CPA helps set top bids for paid channels.
Operational workflow
1. Input spend, revenue, and conversion count by campaign.
2. Compare ROI across sources before budget shifts.
3. Set target margin and derive max allowable spend.
FAQ
Why can ROAS look good while ROI is weak?
ROAS only compares revenue to ad spend. ROI includes broader costs, so it reflects true profitability.
How do I use break-even CPA in buying decisions?
Treat break-even CPA as a ceiling for bids and scaling. If effective CPA goes above it, campaign margin usually deteriorates.