Marketing ROI Calculator
Calculate the return on investment (ROI) of a marketing campaign based on the real profit it generated, not on gross revenue — if you sell products with a 40% margin, every unit of revenue generated isn't a unit of profit, and ROI calculated on gross revenue overstates the real result.
How is it calculated?
Profit generated = revenue generated by the campaign × your margin on that revenue (if you sell with a 100% margin, the profit generated equals the revenue — use this when your "revenue generated" is already profit, not turnover). Net profit = profit generated − campaign investment. ROI = (net profit ÷ investment) × 100 — how much profit you got for every unit invested, as a percentage.
Examples
2,000 invested, 12,000 in revenue generated, 40% margin
ROI: 140% (2,800 in net profit on 2,000 invested).
5,000 invested, 15,000 in revenue generated, 100% margin (revenue = profit)
ROI: 200% (10,000 in net profit on 5,000 invested).
ROI on profit, not on revenue
A campaign's ROI is (profit generated − investment) ÷ investment × 100, where profit is revenue × margin. With revenue of 12,000, a 40% margin and an investment of 2,000, the ROI is 140%.
If your result is already profit, use a 100% margin. To compare campaigns by revenue use ROAS; to know whether the cost of acquiring a customer pays off long-term, calculate CAC and LTV.