Marketing ROI Calculator
"Did that campaign make money?" is the only question that matters. Enter what you earned and what you spent — and factor in your margin — to get the honest answer: true ROI, net profit, and revenue per dollar.
Revenue isn't profit — always use your margin
The most common way to flatter a marketing report is to divide revenue by spend and call it ROI. But if you sell a $100 product that costs you $70 to make and deliver, only $30 is yours to count against the campaign. This calculator multiplies your revenue by your gross margin first, so the ROI you see reflects money you actually keep — not money that passes through on its way to suppliers. A campaign showing 5× revenue on spend can be barely break-even once a thin margin is applied.
ROI vs. ROAS — and why the gap matters
ROAS (return on ad spend) is the number ad platforms show you: revenue divided by ad spend, with no costs subtracted. It's useful for comparing campaigns and creatives at a glance, but it will happily tell you a campaign is winning while you quietly lose money on every sale. ROI is the truth-teller — it subtracts your costs and your product margin before judging the result. Use ROAS to optimise day to day, but report ROI to anyone who cares whether the business made money. The two only agree when your margin is 100%, which it never is.
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Frequently asked questions
How do you calculate marketing ROI?
Marketing ROI = (profit from the campaign − marketing cost) ÷ marketing cost × 100. Crucially, use profit, not revenue: multiply the revenue by your gross margin first, then subtract the marketing spend, then divide by the spend.
What is a good marketing ROI?
A common rule of thumb is a 5:1 revenue-to-spend ratio (a 400% gross ROI) for a healthy campaign and 10:1 for an exceptional one. Below roughly 2:1, most campaigns lose money once the cost of goods is subtracted. The right target depends on your margins.
What is the difference between ROI and ROAS?
ROAS (return on ad spend) is revenue ÷ ad spend and ignores your costs and margin. ROI measures actual profit relative to cost. A campaign can have a strong ROAS and still a negative ROI if the product's margin is thin.