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Marketing ROI Calculator

Your marketing numbers

Formula: ROI = (Revenue × Margin − Total cost) ÷ Total cost × 100. ROAS = Revenue ÷ spend. Break-even ROAS = 100 ÷ Margin.

Results

ROIโ€”
Net profit / monthโ€”
ROAS (revenue ÷ spend)โ€”
Break-even ROAS at your marginโ€”
Gross profit generatedโ€”
Every $1 spent returnsโ€”

How to use the marketing ROI calculator

  1. Enter total marketing spend โ€” media budgets, content production, sponsorships, events.
  2. Add team and tool costs โ€” the marketing share of salaries, agencies, and your software stack. This is the line most ROI calculations skip.
  3. Enter marketing-attributed revenue โ€” from your attribution model or CRM source tracking.
  4. Set your blended gross margin โ€” revenue is vanity; margin-adjusted return is sanity.
  5. Use it per-channel too โ€” run each channel separately, then compare per-dollar returns to reallocate budget.

Marketing ROI: the formula and the honest version

The textbook formula โ€” (revenue − cost) ÷ cost โ€” hides two traps: counting revenue instead of margin, and counting media spend while ignoring the people and tools that run it. A $5,000 ad budget managed by a $1,500 slice of salaries and software is a $6,500 program. This calculator applies both corrections and returns an ROI you can take to a CFO.

What ROI should marketing produce?

A common benchmark is a 5:1 revenue-to-spend ratio ("good"), with 10:1 exceptional โ€” but those are revenue multiples, not profit. At 60% margin, 5:1 revenue is a 200% ROI; at 25% margin the same ratio barely breaks even. That's the entire argument for margin-adjusted measurement: the ratio means nothing without the margin behind it.

The budget reallocation play

The most valuable use of this calculator isn't the headline number โ€” it's running it once per channel with identical margin assumptions. When PPC returns $1.40 per dollar, email returns $8, and the sponsored newsletter returns $0.60, the next budget writes itself. Do this quarterly; channel efficiency drifts faster than annual planning assumes.

Attribution: pick a model, keep it constant

Last-click undercounts awareness channels; first-touch overcounts them; data-driven models are black boxes. For a small business, the practical answer is CRM source tracking plus consistent rules. The trend in a consistently-measured number beats a precise number measured differently every quarter.

Channel-specific versions

Get sharper per-channel numbers with the dedicated calculators: PPC ROI, SEO ROI, and email marketing ROI. Then feed the winner's profit into the break-even calculator to see what it does to your required sales volume โ€” or invoice the results with our free invoice generator.

Frequently Asked Questions

What is the marketing ROI formula?

ROI = (attributed revenue × gross margin − total marketing cost) ÷ total marketing cost × 100. The margin adjustment is what separates a real ROI from a revenue multiple.

What is a good marketing ROI?

Margin-adjusted, 100%+ is solid and 300%+ is strong for a blended program. As a revenue ratio, 5:1 is the common "good" benchmark โ€” but only at healthy margins.

Should salaries count as marketing cost?

Yes โ€” the share of team time spent on marketing, at loaded cost. A "profitable" program that quietly consumes half a salary isn't profitable; the field for it is built in.

How often should I measure marketing ROI?

Monthly for the blended number, quarterly per channel for reallocation decisions. Long-cycle B2B should also track a 12-month cumulative view so slow channels like SEO get fair credit.

Can I use this for a single campaign?

Yes โ€” enter the campaign's spend, its share of overhead, and its attributed revenue. Same formula, shorter window.