The ROI Formula (and What It Actually Means)
ROI (return on investment) measures how much profit you make relative to how much you spend. In ad arbitrage, that spend is usually ad spend (traffic cost), and the revenue comes from monetizing the visits with display ads (RPM), affiliate offers, or a hybrid.
The trap: most people plug in random CPC/RPM guesses and assume the result is “truth.” The calculator is only as accurate as your inputs, so the goal is to make the inputs realistic fast.
Once you understand the formula, the real work is making the inputs realistic—CPC, RPM, and pageview rate are where most “good-looking” ROI estimates fall apart.