How do you calculate marketing ROI?

Marketing ROI = ((Revenue - Marketing Cost) / Marketing Cost) × 100. For example, if you spend $2,000 on a campaign and generate $8,000 in revenue, your ROI is 300%.

What is a good marketing ROI?

A 5:1 ratio (or 400% ROI) is generally considered strong for marketing. Exceptional campaigns can hit 10:1 or higher. Anything below 2:1 is often not profitable once you account for overhead costs.

What is the difference between ROI and ROAS?

ROAS (Return on Ad Spend) measures revenue per dollar of ad spend specifically. ROI measures net profit relative to total marketing investment, including labor, tools, and other costs beyond just ad spend. ROI gives a fuller picture of profitability.

Marketing ROI Calculator

Enter your total marketing investment and the revenue it generated to calculate your return on investment.

What Is Marketing ROI?

Marketing ROI measures the profitability of your marketing efforts. It answers one question: for every dollar invested in marketing, how much profit did you get back? A 300% ROI means you earned $3 in profit for every $1 you spent.

The Marketing ROI Formula

The formula is simple:

Net Profit = Revenue Generated − Marketing Investment
ROI = (Net Profit ÷ Marketing Investment) × 100
Return per Dollar = Revenue ÷ Investment

For example, if you spend $5,000 on marketing and generate $18,000 in revenue, your net profit is $13,000 and your ROI is 260%.

ROI vs. ROAS: When to Use Each

ROAS (Return on Ad Spend) measures revenue against ad spend only. ROI measures profit against total investment — ad spend plus agency fees, tools, staff time, creative production, and any other costs. Use ROAS for quick campaign-level decisions. Use ROI for strategic decisions about your overall marketing budget.

Common Marketing ROI Benchmarks

A 5:1 revenue-to-cost ratio (400% ROI) is a common benchmark for strong marketing. Exceptional campaigns can hit 10:1 or higher. Below 2:1, your marketing is likely not covering costs once you factor in overhead. These benchmarks vary by industry — high-margin SaaS businesses can tolerate lower ratios than e-commerce businesses with thin product margins.

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