Enter the revenue a campaign brought in, what it cost to deliver and what you spent on marketing to see your return on investment.
Results are estimates for planning. Check the figures before you make a financial or health decision.
How to calculate marketing ROI
Take the profit from the campaign and divide it by the marketing cost:
ROI = (revenue − cost of goods − marketing cost) ÷ marketing cost × 100
An ROI of 150 per cent means you earned 1.50 in profit for every 1 you spent on marketing. A negative ROI means the campaign cost more than it earned.
Worked example
Using the default values in the calculator above:
| Input | Value |
|---|---|
| Revenue from the campaign | 50,000 |
| Cost of goods or delivery, optional | 20,000 |
| Marketing cost | 12,000 |
| Result | Value |
|---|---|
| Marketing ROI | 150% |
| Net profit from the campaign | 18,000 |
| Revenue | 50,000 |
| Cost of goods or delivery | 20,000 |
| Marketing cost | 12,000 |
| Profit per 1 of marketing | 1.5 |
What is a good marketing ROI?
Any positive ROI means the campaign paid for itself, but a good target depends on how much risk, time and effort the campaign involves, and what else you could do with the money. Many marketers look for a clear margin above break-even. Compare each campaign against your other options, not an industry average.
Tips and common mistakes
Count all the costs. Ad spend is only part of it: include agency fees, tools, creative and staff time to get a realistic ROI.
Match the time period. Revenue from long sales cycles can arrive months after the spend, so a short window understates ROI.
Use profit rather than revenue where possible. Revenue-only figures overstate the return and are really ROAS.
Frequently asked questions
How is marketing ROI different from ROAS?
ROAS divides revenue by ad spend. ROI divides profit by total marketing cost, so it takes product costs into account.
What if my ROI is negative?
The campaign lost money on a direct basis. It may still have value, such as brand awareness or repeat customers, but check the lifetime value before cutting it.
Should I include salaries in the cost?
If the team time was spent on the campaign, yes. Leaving it out flatters the result.
Can ROI be over 100 per cent?
Yes. An ROI of 100 per cent means the profit equals the cost, so you earned back your spend once over.