Free Marketing ROI Calculator

Enter your marketing spend and the revenue it generated to instantly see your marketing ROI, ROAS, and net profit.

Marketing spend ($)

Revenue from marketing ($)

Gross margin (%) — optional

—Marketing ROI

—ROAS

—Net profit

What is marketing ROI? (the formula)

Marketing ROI (return on investment) measures the profit you earn for every dollar spent on marketing. The marketing ROI formula is:

Marketing ROI = (Revenue from marketing − Marketing cost) ÷ Marketing cost × 100%

Example: $20,000 in revenue from $5,000 of marketing spend is ($20,000 − $5,000) ÷ $5,000 = 300% ROI. For a profit-accurate number, multiply revenue by your gross margin first — the calculator above does this when you enter a margin.

Marketing ROI vs ROAS

ROAS (return on ad spend) is revenue ÷ spend and ignores margins; marketing ROI is profit-based and tells you whether marketing actually made money after costs. A 4x ROAS can still be a negative ROI if your margins are thin, so check both.

What is a good marketing ROI?

A common rule of thumb is a 5:1 revenue-to-cost ratio (about 400% ROI), with 10:1 considered excellent and below 2:1 often unprofitable once margins and overhead are counted. The honest benchmark is positive ROI after gross margin — anything above 0% on a margin-adjusted basis is making money.

How to calculate marketing ROI, step by step

Total the revenue attributable to a campaign or channel.
Multiply by your gross margin to get gross profit (skip if you want a revenue-based number).
Subtract the marketing cost for the same period.
Divide by the marketing cost and multiply by 100 for your ROI percentage.

Marketing ROI calculator FAQ

What is a good marketing ROI?

A 5:1 revenue-to-cost ratio (about 400%) is a common target; 10:1 is excellent. The real benchmark is positive ROI after gross margin.

What is the marketing ROI formula?

(Revenue from marketing minus marketing cost) divided by marketing cost, times 100. For profit accuracy, multiply revenue by gross margin first.

Is marketing ROI the same as ROAS?

No. ROAS is revenue divided by ad spend and ignores margin; marketing ROI is profit-based, so it shows whether you actually made money.

How do I improve marketing ROI?

Raise conversion rates and average order value, shift budget to your best-performing channels, cut wasted spend, and improve retention so each customer is worth more.

Should I use revenue or profit for ROI?

Profit (revenue times gross margin) gives the truest ROI. Revenue-based ROI is simpler but can overstate results when margins are low.

Not the same as its near-namesake. ROI and ROAS use the same three numbers but answer different questions: ROI is profit relative to spend, ROAS is revenue per unit of spend. For the latter use the ROAS calculator; for an email-specific model built from list size, open and click rates, use the email marketing ROI calculator.

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