Marketing ROI Calculator
Measure the profitability of your marketing campaigns and optimize your budget allocation.
Campaign Results
Understanding Marketing ROI
Return on Investment (ROI) is the most critical metric for any marketing professional or business owner. It measures the efficiency of an investment or compares the efficiencies of several different investments. In marketing, it tells you exactly how much money you made back for every dollar spent on advertising, content creation, or software.
The Marketing ROI Formula
The standard calculation used in our tool is:
Key Metrics Explained
- Total Campaign Cost: This should include ad spend, labor costs, agency fees, and overhead associated specifically with the campaign.
- Net Profit: The pure financial gain after all campaign expenses have been deducted from the generated revenue.
- Cost Per Lead (CPL): This identifies how much it costs to acquire a potential customer's information. A lower CPL usually indicates better targeting.
- Cost Per Acquisition (CPA): Often referred to as Cost Per Sale, this tells you the average amount spent to secure one paying customer.
Example Calculation
Imagine you run a Facebook Ads campaign that costs $2,000. During the campaign period, that specific traffic source generates $10,000 in sales. You also tracked 100 new leads and 20 final sales.
- ✅ Profit: $10,000 – $2,000 = $8,000
- ✅ ROI: ($8,000 / $2,000) x 100 = 400%
- ✅ CPL: $2,000 / 100 leads = $20.00 per lead
- ✅ CPA: $2,000 / 20 sales = $100.00 per customer
Pro Tip: When calculating ROI, ensure you are attributing revenue correctly using tools like UTM parameters or CRM tracking. Overestimating revenue is a common mistake that leads to inflated ROI figures.