ROAS Bonus Model Calculator

This calculator serves as a strategic tool for marketers to optimize ad performance and predict financial incentives, leading to more targeted and profitable campaigns.

What to Input:

  • Costs and Revenue: Start by typing in what you’re spending on ads (let’s say $5,000) and what you’ve earned from them (maybe $15,000).
  • ROAS Target: Decide on the ROAS you’re aiming for. If you’re hoping to triple your ad spend, you’d set it at 300%.
  • Above and Beyond: If you beat your target, how much is the extra win worth to you? If you’re giving yourself a 10% commission on any profits above your goal, that’s your rate.
  • Steady Costs: Got a regular cost that doesn’t change, like a platform fee? Add that in as your fixed fee (say, $500).

How to Use It: 

  • Actual ROAS: It calculates how much you’re really getting back from your ads. With $15,000 earned on a $5,000 spend, your actual ROAS is 300%.
  • Commission Bonus: If you outperform your target, here’s where you’ll see what extra you’ve earned. So, if your actual ROAS is 300% against a target of 200%, you get a bonus.
  • Total Compensation: This is the total of your fixed fee plus any commission you’ve earned. It’s your actual takeaway from the campaign.
  • Net ROAS: This is your final score, telling you how profitable the campaign is after all expenses.

Real-World Scenario:

Meet Sam, a digital marketing strategist working with an e-commerce client. Sam uses the calculator to determine the profitability of his campaign. He enters:

  • $5,000 spent on ads.
  • $15,000 revenue generated, hitting a 300% ROAS.
  • He had aimed for a 200% ROAS, so he’s exceeded the target by 100%.
  • Sam’s agreement includes a 10% commission on any profit above the 200% target.
  • His fixed fee for managing the campaign is $500.

The calculator shows Sam’s actual ROAS is right on target at 300%. Since he’s surpassed the goal, he earns a commission bonus, calculated automatically. When he adds in his fixed fee, the tool provides the net ROAS, giving him a clear picture of his campaign’s success and the additional compensation he’s earned for his agency.

ROAS Bonus Model Calculator
Actual ROAS: $0
Commission Bonus: $0
Total Compensation: $0
Net ROAS: $0