AdWords ROI formula is:
ROI = (Your net profit/ your AdWords spend) x100
Let me explain with one sample.
You spent $100 and this cost has returned 3 sales.
Each sales provides you an average revenue of $35
Your total revenue is $105.
Your Net profit is $105-$100 = $5).
Your AdWords ROI = (($105 your profit - $100 adwords expense)/$100 adwords expense) x 100 = 5%
Your ROI is 5%
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