Marketing ROI Calculator
Works out whether a campaign earned back more than it cost.
Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.
The formula
gross profit = (sales − baseline) × margin ROI = (gross profit − cost) ÷ cost simple ROI = (sales − cost) ÷ cost
Only sales the campaign added should count, and only the profit on them. Sales from repeat customers later on are not included.
What to watch out for
Set the baseline from a comparable earlier period or a region that did not see the campaign. Count every cost of the campaign and not only the media.
Frequently Asked Questions
How do I calculate marketing ROI?
Take the gross profit on the extra sales, subtract the cost, and divide by the cost. Sales of 20,000 against a 5,000 baseline at a 40% margin, on a 3,000 campaign, give 100.00%.
Why not divide all revenue by the cost?
It counts sales you would have had anyway and ignores the cost of the goods. The same campaign shows 566.67% that way, which is far above the return it really made.
What does a negative ROI mean?
The campaign did not earn back its cost. An ROI of -33.33% means sales of 5,000 at a 40% margin returned less than the 3,000 spent.