Marketing ROI Calculator
Measure the true return on a marketing campaign from the revenue it drove, your gross margin and the amount you spent.
How it works
Gross profit = revenue × margin% · Marketing ROI % = (gross profit − spend) ÷ spend × 100
A ROI figure built on raw revenue overstates the win, because most of that revenue is eaten by the cost of the product itself. The honest version measures the gross profit the campaign produced — revenue times your margin — then compares the profit left after subtracting the marketing spend. A positive ROI means the campaign paid for itself and added profit; a negative one means it lost money even before overhead.
Worked example
A campaign costs $10,000 and is credited with $50,000 of revenue at a 60% gross margin. Gross profit is 50,000 × 0.60 = $30,000; net return is 30,000 − 10,000 = $20,000; ROI is 20,000 ÷ 10,000 = 200%.
Frequently asked questions
Should I use revenue or profit for marketing ROI?
Profit. If you divide raw revenue by spend you are measuring return on ad spend (ROAS), not ROI. True ROI subtracts the cost of the goods sold — via your gross margin — so a high-revenue, low-margin campaign is not mistaken for a winner.
What counts as a good marketing ROI?
A 5:1 revenue-to-spend ratio is a common rule of thumb, but the ROI that matters depends on your margin. At a 60% margin, breaking even on profit needs revenue of roughly 1.7× spend; anything above that adds profit.
How do I attribute revenue to a campaign?
Use tracked links, promo codes, or a defined attribution window in your analytics. Attribution is never perfect, so treat the ROI as directional and compare campaigns measured the same way.
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Educational estimate, not financial or tax advice.