Ads Calculator ← Back to Blog

5 common mistakes when measuring ROI in Ads

Is your ROI actually accurate? Learn the top 5 mistakes marketers make when calculating ad profitability.

Calculating ROI (Return on Investment) seems simple, but many businesses are getting it wrong. Here are 5 common mistakes:

  1. Ignoring Taxes (VAT): Taxes are not your profit. They must be removed from your gross revenue calculation.
  2. Ignoring Product Costs (COGS): ROAS is not ROI. If your product costs are high, a 5x ROAS might still mean you’re losing money.
  3. Not Including Shipping & Fees: Transaction fees (like PayPal or Stripe) and shipping costs eat into your margins.
  4. Attribution Errors: Relying only on Facebook or Google Ads dashboards without cross-checking with your real bank account data.
  5. Short-term Thinking: Not accounting for the Lifetime Value (LTV) of a customer.

Stop making these mistakes. Use our comprehensive calculator to get your real net profit today.