How to Calculate the ROI of my AdWords Campaign?

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So I have an AdWords campaign with the following numbers:

Total Sales through Ads: 630000
Cost of the goods: 590000
Cost of Advertising: 22500

If I follow AdWords ROI formula, I have a ROI of 2.85%: (Sales - Total Cost)/Total Costs = (630000 - 612500)/612500.

But I understood that ROI was Profit / Investment and that's how I saw it in many places. Which would be a ROI of 77%: (Profit - Cost of Ads) / Cost of Ads = (40000 - 22500) / 22500

I even saw a formula stating ROI which would be a crazy 2522%: (Revenue - Cost of Ads) / Cost of Ads.: (630000 - 22500)/22500

So if someone asks me for my PPC ROI in AdWords... what should I say? Really confused here.
#adwords #calculate #campaign #roi
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  • Profile picture of the author RuneE
    Yo yo.

    You can Google for ROI Calculator =)

    I just Google Adwords ROI Calculator and got this one for you:

    I am not affiliated, nor do I know the guy who owns the page. Hopefully, this helps )
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