Marketing ROI Calculator
Work out gross profit, profit after marketing cost and ROI per cent from marketing cost, revenue and margin.
- Gross profit
- —
- Profit after marketing cost
- —
Depends on how well revenue is attributed to marketing; overheads and tax are not included.
What is the Marketing ROI Calculator?
Marketing ROI compares the profit your marketing produced with what it cost. This calculator applies your gross margin to attributed revenue, subtracts the marketing cost, and divides by that cost. A positive ROI means the activity more than paid for itself on a gross-profit basis.
How it works
Gross profit = attributed revenue x gross margin %. Profit after marketing = gross profit minus marketing cost. ROI % = profit after marketing / marketing cost x 100. If marketing cost is zero, ROI shows zero. Overheads and tax are not included.
How to use it
- Enter the total marketing cost for the period.
- Enter the revenue you can attribute to that marketing.
- Enter your gross margin on that revenue.
- Read the profit and ROI, and compare across campaigns.
Marketing ROI Calculator — FAQ
How is ROI different from ROAS?
ROAS compares revenue with ad spend. ROI compares profit with total cost, so it reflects your margins.
How should I attribute revenue?
Use a consistent method, such as tracked links, coupon codes or a CRM source field, and apply it the same way across channels.
Does ROI cover long-term effects?
Not fully. Brand building and repeat customers may pay back later, so a short-term ROI can understate them.