Marketing ROI Calculator
Calculate your marketing campaign ROI, ROAS, net profit, and cost per conversion. Free marketing ROI calculator with attribution support.
Marketing ROI Calculator
Calculator
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Formula: ROI = ((Revenue - Cost) / Cost) × 100 | ROAS = Revenue / Cost
Worked example — ROI: 260% | Net Profit: $13,000 | ROAS: 3.60 | CPC: $33.33
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% Net Profit = $18,000 - $5,000 = $13,000 ROAS = $18,000 / $5,000 = 3.60 Cost 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 ROI = (($18,000 - $10,000) / $10,000) × 100 = 80% ROAS = $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 cost per conversion?
Cost per conversion (CPC or CPA) is calculated by dividing total campaign cost by the number of conversions. For example, if you spend $5,000 on a campaign and generate 250 conversions, your cost per conversion is $20. This metric helps compare efficiency across campaigns and channels. Lower cost per conversion indicates better efficiency, but always consider the quality and value of those conversions.
How do profit margins change the ROI a campaign really delivers?
The formula on this page divides net gain by cost using revenue, so it reports return on top-line sales. If your gross margin is 40%, only 40 cents of each revenue dollar is available to cover the campaign. Substituting gross profit for revenue gives margin-adjusted ROI: a $5,000 campaign returning $18,000 at 40% margin yields $7,200 gross profit, so ((7,200 - 5,000) / 5,000) x 100 = 44% rather than 260%. Low-margin retailers should always run this version.
What is the difference between first-touch and last-touch attribution?
First-touch attribution assigns all conversion credit to the earliest recorded interaction, so it rewards discovery channels such as display, social and organic search. Last-touch assigns it to the final click before purchase, which flatters branded search and retargeting. The same campaign can show wildly different attributed revenue under each model, which is why Marketing ROI Calculator exposes attribution as a percentage: you decide what share of revenue the channel earned, then the ROI and ROAS figures follow from that judgement.
Why can a campaign show negative ROI while still generating sales?
ROI turns negative whenever attributed revenue falls below campaign cost, which happens easily with a high cost per conversion, thin margins, or an attribution share below 100%. A campaign producing 150 conversions at $33.33 each is only profitable if the average order value clears that figure after product and fulfilment costs. Discounting, returns and refunded orders all reduce realised revenue while the ad spend stays fixed, so gross sales volume alone never proves profitability.
How does customer lifetime value change the ROI of an acquisition campaign?
Single-purchase revenue understates campaigns that acquire repeat buyers or subscribers. Lifetime value counts the expected gross profit from a customer across the whole relationship, so a subscription business acquiring a customer at $120 cost against a $40 first payment looks like a loss in month one but a strong return once a year of renewals is counted. Enter expected lifetime revenue rather than first-order revenue when you want the payback view, and be explicit about the time horizon.
When should incrementality testing replace attributed revenue?
Attribution reports credit conversions a channel touched, not conversions it caused. Retargeting in particular collects credit from buyers who would have returned anyway, inflating ROAS. An incrementality or geo holdout test suppresses ads for a randomised group and measures the difference in conversions between the exposed and held-out audiences. Feed that incremental revenue into Marketing ROI Calculator, at 100% attribution, when you need a spend decision rather than a reporting number.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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