What’s the difference between ROI and ROAS?

ROAS only compares revenue to ad spend; a 3x ROAS can still lose money if the product costs 40% of the price. ROI subtracts every cost, so it’s the number that matches your bank account.

What counts as a good ROI?

There’s no universal benchmark — it depends on your margin and how much risk you take per test. The verdict chips here (strong / thin / losing) are simple thresholds at 50% and 0%, not industry data.

Are the default numbers real?

No. They’re an illustrative example so the tool isn’t blank. Replace them with your own campaign.

Where does the payment fee default come from?

Three percent is a round figure for card processing (most gateways charge about 2.9% plus a fixed fee). Set it to whatever your gateway actually charges.

[ Free tool ]

ROI calculator

ROAS tells you what the ads returned. ROI tells you what you kept after the product, shipping and fees that revenue had to pay for. Enter a campaign and see both.

Ad spend

Total spent on the campaign or period

Orders generated

Selling price

Product + shipping cost

Landed cost per order

Payment fees

Default 3% — Stripe/PayPal/Shopify Payments territory

Defaults are an example store, not a benchmark. Replace them with your numbers.

Return on investment

Thin return

44%

Net profit ÷ everything you spent

Revenue: $1,600
Total invested: -$1,108
Net profit: $492
ROAS: 3.20x
Orders to cover ads: 21

Where revenue went

31%

Kept

Net profit$492
Ad spend$500
Product + shipping$560
Payment fees$48

Every $1 you put in came back as $1.44 — a 44% return on $1,108 invested.

ROI is only as good as the product behind it.

Majorka shows which products are actually selling before you fund the test.

Find a product free

How it works

1
Revenue = orders × selling price.
2
Investment = ad spend + (orders × product and shipping cost) + payment fees on revenue.
3
ROI = (revenue − investment) ÷ investment. ROAS = revenue ÷ ad spend.
4
Orders to cover ads = ad spend ÷ contribution per order, so you know the volume a test needed to break even.

ROI is only as good as the product behind it.

Majorka shows which products are actually selling before you fund the test.

Find a product free

Frequently asked

What’s the difference between ROI and ROAS?: ROAS only compares revenue to ad spend; a 3x ROAS can still lose money if the product costs 40% of the price. ROI subtracts every cost, so it’s the number that matches your bank account.
What counts as a good ROI?: There’s no universal benchmark — it depends on your margin and how much risk you take per test. The verdict chips here (strong / thin / losing) are simple thresholds at 50% and 0%, not industry data.
Are the default numbers real?: No. They’re an illustrative example so the tool isn’t blank. Replace them with your own campaign.
Where does the payment fee default come from?: Three percent is a round figure for card processing (most gateways charge about 2.9% plus a fixed fee). Set it to whatever your gateway actually charges.

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