Marketing Campaign ROI Calculator
Calculate your return on investment and net profit for digital marketing campaigns.
Campaign Results
Understanding Marketing ROI (Return on Investment)
Return on Investment (ROI) is the most critical metric for any business or marketing professional. It measures the efficiency of an investment by comparing the amount of money earned or lost relative to the amount of money invested. In marketing, a positive ROI means your campaign generated more revenue than it cost to run.
How is Marketing ROI Calculated?
The standard formula used in this calculator is:
ROI = ((Total Revenue – Total Investment) / Total Investment) * 100
Key Metrics Explained
- Total Investment: This includes all costs associated with the campaign, such as ad spend (Google Ads, Facebook Ads), creative production costs, agency fees, and software subscriptions.
- Total Revenue: The gross sales generated directly from the marketing efforts.
- Net Profit: The actual money left over after subtracting your costs from your revenue.
- ROAS (Return on Ad Spend): Specifically measures the revenue generated for every dollar spent on advertising (Revenue / Investment).
Example Calculation
Imagine you run a Facebook Ads campaign for a month. You spend $2,000 on ads and pay a graphic designer $500 for the assets, making your total investment $2,500. If that campaign results in $10,000 in sales:
- Net Profit: $10,000 – $2,500 = $7,500
- ROI: ($7,500 / $2,500) * 100 = 300%
- ROAS: $10,000 / $2,500 = 4.0x
This means for every $1 you spent, you earned $3 in profit and $4 in total revenue.
What is a "Good" ROI?
While a "good" ROI varies by industry, a 5:1 ratio (400% ROI) is generally considered strong for most digital marketing campaigns. A 2:1 ratio (100% ROI) is often considered the "break-even" point when factoring in other overhead costs like shipping, inventory, and labor.