Here is the calculation mentioned in the podcast. See this and parallelly listen, to understand even more better.

Spent on fb ads = $10,000

Revenue generated = $50,000

ROAS = Total campaign revenue/Total campaign cost = $50,000/$10,000 = 5x

ROI = Net profit*100/net spent 

Netprofit = Total revenue - Total expenses

Now substitute this in the formula of ROI

ROI =  (Total revenue - Total expenses)*100/Net spent

As we took margin as 15%, now use that in total revenue place.

Now substitute the values in the ROI formula above.

ROI = ($50,000*15%)-$10,000*100/$10,000  = -25%

This is how you need to calculate ROAS and ROI.

I hope this helps.

AND

I am giving away FREE STRATEGY sessions to service based business owners which can help them 2x, 3x, or even more their business revenue.

Here is the link to Book your strategy call : https://calendly.com/maruthibhargav/free-strategy-session?month=2022-04

You can follow me for more branding and marketing strategies for absoultely $0 Here:

Linkedin : https://www.linkedin.com/in/maruthibhargav/

Twitter   : https://twitter.com/maruthi_bhargav

Much Love

Thanks