ROAS divides revenue by advertising spend. This model subtracts variable delivery costs and marketing spend before calculating return.
Try this with your own numbersFormula and worked example
ROI = (revenue × contribution margin − marketing cost) / marketing cost × 100
| Input | Example |
|---|---|
| Attributed revenue | 15,000 |
| Pre-marketing contribution margin | 40 % |
| Marketing cost | 3,000 |
| Calculated result | 100 % |
Choose reliable inputs
Include travel, preparation, cleaning and staffed capacity for each booking. For this pet grooming calculation, use booking history, care schedules and cleaning records and a consistent definition of one appointment.
- Groomer time: include the portion belonging to this appointment or reporting period, and record where the value came from.
- Consumables: include the portion belonging to this appointment or reporting period, and record where the value came from.
- Equipment overhead: include the portion belonging to this appointment or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
How is marketing ROI different from ROAS?
ROAS divides revenue by advertising spend. This model subtracts variable delivery costs and marketing spend before calculating return.
Attribution is an input assumption; revenue is not the same as profit.
What if this input changes?
If attributed revenue rises by 10%, this example changes by 20 %. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.