In digital marketing, knowing your numbers is just as important as the creative content you produce. The Marketing Campaign ROI Calculator is designed to help business owners, marketers, and advertisers determine the true profitability of their investments. Unlike simple metrics that look only at revenue, this calculator considers the full cost structure—including Ad Spend and Cost of Goods Sold (COGS)—to give you a realistic picture of your financial health.
Why is ROI Important?
Return on Investment (ROI) is the ultimate performance indicator. While vanity metrics like "clicks" or "impressions" show activity, ROI shows profitability. A positive ROI indicates that your marketing efforts are yielding a net profit, whereas a negative ROI suggests that you are spending more to acquire a customer than the customer is worth.
Formulas Used in This Calculator
To provide accurate data, we use standard financial formulas adapted for marketing contexts:
Net Profit = Total Revenue – (Ad Spend + COGS)
ROI (%) = (Net Profit / Total Cost) × 100
ROAS (Return on Ad Spend) = Total Revenue / Ad Spend
ROI vs. ROAS: What's the Difference?
Many marketers confuse ROI with ROAS. Here is the distinction:
ROAS measures gross revenue generated for every dollar spent on advertising. It does not account for product costs or overhead. It is useful for optimizing specific ad platforms like Facebook or Google Ads.
ROI measures the actual profit generated. It accounts for the cost of the product (COGS) and the ad spend. It is the metric that determines if your business is actually making money.
Example Calculation
Imagine you spend $1,000 on ads to sell a product. You generate $3,000 in revenue. However, the product costs you $1,200 to manufacture and ship (COGS).
Total Costs: $1,000 (Ads) + $1,200 (COGS) = $2,200
Net Profit: $3,000 (Revenue) – $2,200 (Costs) = $800
ROI: ($800 / $2,200) × 100 = 36.36%
Even though your ROAS is 3.0x ($3000/$1000), your actual profit margin is tighter due to COGS. Use this calculator to ensure you stay in the green.