Marketing ROI Calculator
Calculate marketing campaign return on investment from spend and revenue generated. Enter values for instant results with step-by-step formulas.
Formula
ROI = ((Revenue - Cost) / Cost) × 100 | ROAS = Revenue / Cost
Marketing ROI is calculated by subtracting the campaign cost from attributed revenue, dividing by the cost, and multiplying by 100 to get a percentage. ROAS divides revenue by cost for a simple ratio.
Worked Examples
Example 1: Facebook Ads Campaign
Problem: A business spends $5,000 on Facebook ads, generates $18,000 in revenue with 100% attribution and 150 conversions.
Solution: ROI = (($18,000 - $5,000) / $5,000) × 100 = 260%\nNet Profit = $18,000 - $5,000 = $13,000\nROAS = $18,000 / $5,000 = 3.60\nCost per Conversion = $5,000 / 150 = $33.33
Result: ROI: 260% | Net Profit: $13,000 | ROAS: 3.60 | CPC: $33.33
Example 2: Multi-Channel Campaign with Attribution
Problem: A company spends $10,000 on Google Ads which contributed to $30,000 in revenue, but only attributes 60% of revenue to this channel.
Solution: Attributed Revenue = $30,000 × 60% = $18,000\nROI = (($18,000 - $10,000) / $10,000) × 100 = 80%\nROAS = $18,000 / $10,000 = 1.80
Result: ROI: 80% | Attributed Revenue: $18,000 | ROAS: 1.80
Frequently Asked Questions
What is Marketing ROI?
Marketing ROI (Return on Investment) measures the profitability of your marketing campaigns by comparing the revenue generated to the cost invested. It is calculated as ((Revenue - Cost) / Cost) × 100. A positive ROI means the campaign is profitable, while a negative ROI indicates a loss. For example, if you spend $1,000 on a campaign and generate $3,000 in revenue, your ROI is 200%.
What is ROAS and how is it different from ROI?
ROAS (Return on Ad Spend) measures the gross revenue generated for every dollar spent on advertising. It is calculated as Revenue / Ad Spend. For example, a ROAS of 4.0 means $4 in revenue for every $1 spent. Unlike ROI, ROAS does not account for profit margins, overhead, or other costs. ROI gives a more complete picture of profitability, while ROAS is useful for quickly evaluating ad campaign performance.
What is attribution percentage in marketing?
Attribution percentage represents how much credit a specific marketing channel or campaign receives for a conversion or sale. In multi-channel marketing, customers may interact with multiple touchpoints before converting. Attribution models (first-touch, last-touch, linear, time-decay) determine how credit is distributed. Setting attribution to 50% means you attribute half of the revenue to this particular campaign.
What is a good marketing ROI benchmark?
A commonly cited benchmark is a 5:1 ratio (500% ROI), meaning $5 in revenue for every $1 spent. A ratio of 10:1 (1000% ROI) is considered exceptional. However, benchmarks vary significantly by industry, channel, and business model. E-commerce businesses often see 300-500% ROI from paid ads, while content marketing and SEO may see 500-1000%+ ROI over longer time periods due to lower ongoing costs.
How do I calculate marketing ROI?
Marketing ROI = (Revenue Attributable to Marketing - Marketing Cost) / Marketing Cost * 100. A 5:1 ratio (500% ROI) is generally considered strong. Track Customer Acquisition Cost (CAC) = Total Marketing Spend / New Customers Acquired. Compare CAC to CLV to ensure profitability. Include all costs: ad spend, tools, salaries, and agency fees.
Can I use the results for professional or academic purposes?
You may use the results for reference and educational purposes. For professional reports, academic papers, or critical decisions, we recommend verifying outputs against peer-reviewed sources or consulting a qualified expert in the relevant field.