Marketing ROI Calculator
Measure the profit generated per unit of marketing spend.
What the Marketing ROI Calculator does
Marketing ROI measures profit rather than revenue, making it the honest counterpart to ROAS. A campaign can show an impressive ROAS and still lose money once the cost of goods is deducted.
Formula
Gross profit = Revenue × Gross marginNet profit = Gross profit − Marketing costMarketing ROI % = Net profit ÷ Marketing cost × 100
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Revenue attributed to marketing | selected currency | Yes | Accepts more than 0. |
| Total marketing cost | selected currency | Yes | Accepts more than 0. |
| Gross margin | % | Yes | — |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Revenue attributed to marketing, Total marketing cost and Gross margin.
- Select Calculate.
Worked example
$180,000 of attributed revenue from $35,000 of marketing at a 55% gross margin.
- Revenue
- 180000
- Cost
- 35000
- Margin
- 55
Gross profit $99,000, net $64,000 — a 182.9% ROI and a 5.14:1 ROAS.
Frequently asked questions
Why is my ROI so much lower than my ROAS?
Because ROAS ignores the cost of what you sold. At a 50% gross margin, a 4:1 ROAS is only a 100% ROI.