Ad return (ROAS) calculator for an HOF clinic
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ROAS is the most direct question about an ad: for every real invested, how many reais of revenue came back? But revenue is not profit. A nice-looking ROAS with a low margin can still lose money. The calculator shows the ROAS, the break-even ROAS for your margin and the real return on investment.
Your data stays in your browser. The starting values are a hypothetical example.
What does each field mean?
| Field | What to enter |
|---|---|
| Ad investment | How much was spent in the period. |
| Patients who signed on from the ad | Only those who paid and whom you can attribute to the ad. |
| Average ticket | The average amount paid by those patients. |
| Contribution margin | The percentage left after materials, taxes and fees. |
How is the calculation done?
- Attributed revenue = patients × ticket.
- ROAS = revenue ÷ investment.
- Break-even ROAS = 1 ÷ margin. It is the ROAS at which the margin pays for the ad.
- Margin minus investment = revenue × margin minus investment.
- Return on investment = (margin minus investment) ÷ investment.
Worked hypothetical example
Hypothetical example: R$ 3,000.00 invested, 6 patients, a ticket of R$ 1,800.00 and a 45% margin.
| Step | Calculation | Result |
|---|---|---|
| Attributed revenue | 6 × 1,800 | R$ 10,800.00 |
| ROAS | 10,800 ÷ 3,000 | 3.6x |
| Break-even ROAS | 1 ÷ 0.45 | 2.22x |
| Margin minus investment | 10,800 × 45% minus 3,000 | R$ 1,860.00 |
| Return on investment | 1,860 ÷ 3,000 | 62.0% |
How do you use the result?
To look at the funnel, use the CPL and the CAC. To consider the patient's value over time, see the LTV. And if the bottleneck is after the click, the consultation conversion rate shows where to improve.
Frequently asked questions
What is ROAS?
ROAS is return on ad spend: the revenue attributed to the ad divided by the amount invested in it.
Is a ROAS of 3 good?
It depends on the margin. With a 45% margin, the break-even ROAS is about 2.2. Above that the ad pays for itself; below it, it loses money.
Are ROAS and ROI the same thing?
No. ROAS uses revenue. Return on investment uses the margin after subtracting the spend, which reflects profit better.