Strique calculates ROI and ROAS using standardized formulas across platforms, ensuring consistency regardless of your ad sources or ecommerce setup. Here’s how we define and calculate each:
1. ROAS (Return on Ad Spend)
ROAS tells you how much revenue you're generating for every ₹1 (or $1) spent on advertising.
Formula in Strique:
ROAS = Net Sales ÷ Ad Spend
What we use:
Net Sales is calculated as: Gross Sales – (Discounts + Refunds + Shipping + Taxes) This ensures you're measuring revenue that actually contributes to profitability.
Ad Spend is pulled directly from your connected ad platforms like Meta Ads, Google Ads, TikTok Ads, or Amazon Ads.
Platform-specific vs Blended ROAS:
Platform ROAS is calculated using revenue attributed to that specific platform (e.g., Meta Ads ROAS = Meta-attributed Net Sales ÷ Meta Ad Spend).
Blended ROAS includes total Net Sales from all platforms, divided by the combined ad spend across platforms.
2. ROI (Return on Investment)
ROI gives you a broader view of profitability by factoring in both returns and costs—not just ad spend.
Formula in Strique:
ROI = (Net Profit ÷ Ad Spend) × 100
Or expressed another way:
ROI = [(Net Sales – Ad Spend) ÷ Ad Spend] × 100
What we use:
Net Sales is calculated as above.
Ad Spend comes from your connected platforms.
Net Profit = Net Sales – Ad Spend (in this case, we assume ad spend is the primary cost being measured).
Example:
If you made ₹1,00,000 in Net Sales and spent ₹25,000 on ads:
ROAS = 1,00,000 ÷ 25,000 = 4.0 (or 4x return)
ROI = [(1,00,000 – 25,000) ÷ 25,000] × 100 = 300%
Key Difference Between ROAS and ROI in Strique
ROAS (Return on Ad Spend) focuses on the efficiency of your ad spend. It tells you how much revenue you're generating for every unit of currency spent on ads. It does not account for any other costs besides ad spend. The result is shown as a ratio—for example, a ROAS of 4.2x means you earned ₹4.20 for every ₹1 spent.
ROI (Return on Investment) focuses on overall profitability. It factors in both revenue and ad spend to show how much profit you earned relative to your investment. ROI includes costs (in this case, ad spend) and is shown as a percentage—for example, an ROI of 320% means you earned ₹3.20 in profit for every ₹1 spent on ads.
Why Strique uses Net Sales
By default, Strique uses Net Sales (not Gross Sales) for both ROAS and ROI calculations. This ensures your numbers reflect actual earned revenue, excluding refunds, discounts, shipping, and taxes.
You’ll see both ROAS and ROI values on scorecards, campaign-level breakdowns, and performance summaries throughout Strique dashboards.