Marketing Campaign ROI Calculator
Measure the financial effectiveness of your marketing spend.
Understanding Marketing ROI (Return on Investment)
Return on Investment (ROI) is the most critical metric for any marketing campaign. It measures the profit or loss generated by a marketing activity relative to the amount of money invested. By calculating your ROI, you can determine which channels (SEO, PPC, Social Media, Email) are driving growth and which are draining your budget.
The Marketing ROI Formula
While there are many ways to calculate ROI, the standard formula used in this calculator is:
ROI = [(Total Revenue – Total Cost) / Total Cost] x 100
How to Use This Calculator
- Total Campaign Cost: Include everything—ad spend, agency fees, creative production, and software costs.
- Leads Generated: The total number of inquiries or prospects captured during the campaign period.
- Lead-to-Customer Rate: The percentage of leads that eventually turn into paying customers (e.g., if 10 out of 100 leads buy, your rate is 10%).
- Average Sale Price: The average revenue generated from a single customer purchase.
Example Calculation
Imagine you spend $2,000 on a Google Ads campaign. You generate 100 leads. Your sales team converts 10% of those leads into customers (10 customers). If your average deal value is $500, your total revenue is $5,000.
In this scenario:
Net Profit = $5,000 – $2,000 = $3,000.
ROI = ($3,000 / $2,000) * 100 = 150%.
What is a Good Marketing ROI?
In most industries, a 5:1 ratio (or 400% ROI) is considered strong. A 2:1 ratio is generally considered "break-even" once you factor in overhead, taxes, and cost of goods sold. High-growth software companies often aim for even higher ratios, while retail might operate on thinner margins but higher volume.