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Free Marketing ROI Calculator

Revenue flatters campaigns, so our marketing ROI calculator measures return using gross margin instead. It shows what marketing actually earned after product and delivery costs, with ROAS alongside for comparison.

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Marketing ROI

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Gross profit after spend–ROAS–Break-even revenue–
Methodology

How this is calculated

ROI = (revenue × gross margin − spend) ÷ spend. Using gross margin rather than revenue stops ROI looking better than it is.

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Using the marketing ROI calculator

Enter marketing spend (ads plus agency, tools and creative if you want the full picture), revenue attributed to the campaign and your gross margin. The calculator returns ROI, ROAS and the break-even ROAS for your margin, which is the figure most ad reports leave out. For lead-based businesses, enter leads, close rate and deal value instead of revenue.

ROI is only as good as attribution. Use the same attribution source each time, ideally your CRM or store data rather than each ad platform's own reporting. For businesses with repeat customers, add customer lifetime value to see campaigns that look marginal on the first order but pay back later.

Read our article on why ad platforms and CRMs disagree before comparing channels.

FAQ

Questions we often hear

Straight answers to the things clients ask us most. If yours isn’t here, just ask.

Still have a question?Talk to a strategist. We usually reply within one working day.Ask us directly
What is the difference between ROI and ROAS?
ROAS divides revenue by ad spend. ROI accounts for costs, usually by using gross profit minus total marketing cost, divided by that cost. A campaign can have a healthy ROAS and still lose money once margins and other costs are included.
What is a good marketing ROI?
Anything positive after all costs means the campaign earned more than it spent, but the right target depends on margins, cash flow and customer lifetime value. Break-even ROAS for your margin is a more useful starting benchmark.
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