Marketing ROI Calculator
Calculate the Return on Investment for your advertising campaigns.
What is Marketing ROI?
Return on Investment (ROI) in marketing measures the profit or loss generated by a marketing campaign relative to the amount of money invested. It is the primary metric used by digital marketers to determine if their strategy is effective or if they are losing money on their ad spend.
The Marketing ROI Formula
To calculate ROI, we use the following mathematical formula:
ROI = ((Total Revenue – Total Cost) / Total Cost) x 100
In this calculator, we include both your direct ad spend (like Facebook Ads or Google Ads) and "Other Marketing Costs" (such as agency fees, software, or creative production) to ensure you get a realistic view of your profitability.
Realistic Example Calculation
Suppose you spent $2,000 on Google Ads and $500 on a graphic designer for the ad creatives. Your total investment is $2,500. If that campaign resulted in $7,500 in sales:
- Net Profit: $7,500 – $2,500 = $5,000
- ROI: ($5,000 / $2,500) x 100 = 200%
This means for every $1 you spent, you earned $2 in profit after covering your costs.
Why Tracking ROI is Essential
Without tracking ROI, businesses often fall into the trap of looking only at revenue. High revenue does not always equal high profit if your acquisition costs are too high. By using this calculator, you can identify which channels are performing best and shift your budget toward the highest-yielding campaigns.