How to Calculate Marketing ROI

What is Marketing ROI?

Marketing Return on Investment (ROI) measures the profitability of marketing campaigns relative to their cost. A positive ROI means the campaign generated more revenue than it cost. ROAS (Return on Ad Spend) is a related metric that shows gross revenue per pound spent on ads, without subtracting costs.

Formula

ROI = (Revenue − Marketing cost) / Marketing cost × 100

ROI: (Revenue − Marketing cost) / Marketing cost × 100 — (Revenue − Marketing cost) / Marketing cost × 100

Step-by-Step Guide

1ROI = (Revenue − Marketing cost) / Marketing cost × 100
2ROAS = Revenue / Marketing cost
3A ROAS of 4× means £4 of revenue for every £1 spent
4For accurate ROI, attribute revenue correctly to the campaign — use UTM tracking, CRM data

Worked Examples

Input

Spent £5,000 on Google Ads, generated £22,000 revenue

Result

ROI: 340% · ROAS: 4.4×

(22,000 − 5,000) / 5,000 × 100 = 340%

Input

Spent £10,000, revenue £8,000

Result

ROI: −20% (loss) · ROAS: 0.8×

Negative ROI — campaign losing money

Frequently Asked Questions

What is Roi Marketing?

Marketing Return on Investment (ROI) measures the profitability of marketing campaigns relative to their cost. A positive ROI means the campaign generated more revenue than it cost

How accurate is the Roi Marketing calculator?

The calculator uses the standard published formula for roi marketing. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

What units does the Roi Marketing calculator use?

This calculator works with inches, British pounds. You can enter values in the units shown — the calculator handles all conversions internally.

What formula does the Roi Marketing calculator use?

The core formula is: ROI = (Revenue − Marketing cost) / Marketing cost × 100. Each step in the calculation is shown so you can verify the result manually.

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