Marketing ROI Calculator
Marketing ROI
Calculate overall return on marketing investment
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ROAS (Return on Ad Spend)
Calculate return on ad spend for paid advertising campaigns
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Channel Comparison
Compare marketing ROI across different channels
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Formula
Marketing ROI = (Gross Profit - Marketing Cost) / Marketing Cost × 100 | ROAS = Revenue / Ad Spend | Cost per Conversion = Ad Spend / Conversions
Frequently Asked Questions
What is marketing ROI?
Marketing ROI measures the profit generated relative to marketing spend. Formula: ROI = (Gross Profit - Marketing Cost) / Marketing Cost × 100. A 200% marketing ROI means every $1 spent generated $2 in profit. It is the key metric for evaluating marketing effectiveness.
What is ROAS and how is it different from ROI?
ROAS (Return on Ad Spend) = Revenue / Ad Spend. It measures revenue per dollar, not profit. ROI accounts for product costs (COGS). Example: $5,000 ad spend generates $20,000 revenue = 4x ROAS. If COGS is $10,000, ROI = ($10,000 profit - $5,000 ads) / $5,000 = 100%.
What is a good marketing ROI?
A 5:1 ratio (500% ROI or 5x ROAS) is considered good. 10:1 is exceptional. 2:1 is break-even for most businesses after COGS. Average benchmarks: Google Ads ROAS 2-4x, Facebook Ads 2-5x, Email marketing ROI 4,200% (DMA study), SEO varies but compounds over time.
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