Marketing Campaign ROI Calculator
Total sales generated from the campaign.
Amount paid to ad platforms (Google, FB, etc).
Manufacturing or delivery costs of the products sold.
Labor costs, agency retainers, or software fees.
Calculation Results
Total Revenue
$0.00
Total Costs (Spend + COGS + Fees)
$0.00
Net Profit
$0.00
Return on Ad Spend (ROAS)
0.00x
Marketing ROI
0%
Understanding Your Marketing ROI
Calculating the Return on Investment (ROI) for your digital marketing campaigns is crucial for understanding the profitability of your advertising efforts. While metrics like clicks and impressions show activity, ROI measures the actual business impact.
How is Marketing ROI Calculated?
This calculator uses a comprehensive formula that goes beyond simple ad spend. To get a true picture of profitability, you must account for all costs associated with the campaign, including the cost of goods sold (COGS) and agency or management fees.
The core formula used is:
- Total Costs = Ad Spend + Agency Fees + COGS
- Net Profit = Total Revenue – Total Costs
- ROI (%) = (Net Profit / Total Costs) × 100
ROI vs. ROAS: What's the Difference?
It is common to confuse ROI with ROAS (Return on Ad Spend), but they serve different purposes:
- ROAS (Revenue / Ad Spend) measures the gross revenue generated for every dollar spent on ads. It does not account for profit margins or other costs.
- ROI accounts for all expenses (COGS, fees) to tell you if the campaign was actually profitable "in the bank."
A high ROAS can still result in a negative ROI if your profit margins are thin or your agency fees are high. This tool helps you identify that break-even point.
What is a Good Marketing ROI?
A "good" ROI varies by industry, but generally, a 5:1 ratio (500%) is considered strong for many e-commerce businesses. A 2:1 ratio (200%) might be acceptable for high-volume, low-margin businesses, whereas services businesses often aim much higher. Any ROI above 0% means you are generating profit, while a negative ROI indicates a loss.