Calculate return on investment (ROI) and marketing campaign profitability. Compare channel effectiveness
ROI Formula: ROI = (Revenue − Expenses) / Expenses × 100%
Positive ROI — the investment paid off and generated profit. The higher the value, the more effective the investment.
Negative ROI — the investment didn't pay off, the business incurred losses.
Typical benchmarks: ROI > 100% — excellent result; 50–100% — good; 0–50% — moderate; < 0% — loss.
ROI Calculator: Measure Your Marketing Return on Investment
This free ROI calculator helps you measure the return on investment for marketing campaigns, ad spend, and business projects. Enter your costs and revenue to instantly see whether your investment is profitable.
What is marketing ROI
ROI (Return on Investment) measures how much profit you earn relative to what you spend. In marketing, it answers the question: did this campaign make more money than it cost? A positive ROI means the campaign paid off; negative ROI means you spent more than you earned.
Marketing teams use ROI to compare channels, campaigns, and time periods — and ultimately to decide where to invest the next dollar of budget.
ROI formula
ROI = (Revenue − Cost) / Cost × 100%Example: you spent $5,000 on paid search, generated $20,000 in revenue with $12,000 in cost of goods. Gross profit = $20,000 − $12,000 = $8,000. Net profit = $8,000 − $5,000 = $3,000. ROI = $3,000 / $5,000 × 100% = 60%.
Important: use gross profit (revenue minus cost of goods), not revenue alone. Using raw revenue inflates ROI and makes unprofitable campaigns appear profitable.
Related metrics
| Metric | Formula | When to use |
|---|---|---|
| ROI | (Profit − Cost) / Cost × 100% | Overall investment return |
| ROAS | Revenue / Ad spend | Ad spend efficiency only |
| ROMI | (Profit − Marketing cost) / Marketing cost × 100% | Marketing-specific investments |
| CRR | Ad spend / Revenue × 100% | Ad cost as % of revenue |
| MER | Total revenue / Total marketing spend | Blended marketing efficiency |
ROI benchmarks by channel
| Channel | Average ROI | Notes |
|---|---|---|
| Email marketing | 3600–4200% | Highest ROI in digital marketing |
| SEO | 200–500% | Compounding returns over time |
| PPC / Search ads | 100–300% | Varies heavily by niche |
| Social media (organic) | 50–200% | Hard to directly attribute |
| Paid social | 50–150% | Higher with retargeting |
| Influencer marketing | 30–600% | Wide range; brand-dependent |
FAQ
What is a good ROI for marketing?
ROI above 100% is generally considered good — you doubled your investment. ROI of 300%+ is excellent. However, "good" depends on your industry and sales cycle: e-commerce typically targets 200%+, while B2B with long deal cycles may accept lower ROI per campaign.
What costs should I include?
Include all campaign-related costs: ad spend, agency or freelancer fees, creative production (design, copywriting, video), tools and subscriptions used specifically for the campaign.
Why isn't ROI always enough?
ROI ignores time: 100% ROI in 1 month beats 100% ROI in 1 year. It also ignores scale: 500% ROI on $1,000 generates less profit than 150% ROI on $50,000. Always look at absolute profit alongside ROI percentage.
See also: CPM calculator, LTV calculator, unit economics.
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LTV: How to Calculate Customer Lifetime Value
What LTV is, how to calculate it using different methods, and why it's a key metric for making business decisions.
CPM, CPC, and CPA: Online Advertising Payment Models
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