Marketing ROI Calculator
See what your campaign really returned — ROI measured net of your cost of goods, not the flattering revenue-over-spend number.
Written by Dorothy Ibrahim, 10+ years in banking & finance
Loading calculator…
How we calculate this
This calculator measures what a marketing campaign actually returned after the cost of the goods you sold — not just the revenue it generated. Most "ROI" numbers quoted in marketing are really revenue over spend, which flatters every campaign because it ignores what those sales cost you to fulfill. The tool shows both figures side by side so you can see the gap, and it tells you whether the campaign genuinely made money.
The formulas
- Gross profit from the campaign
- revenue generated × gross marginWith the margin toggle off, the tool uses revenue directly (equivalent to a 100% margin).
- Marketing ROI (margin-based, the primary number)
- (gross profit − marketing spend) ÷ marketing spend
- Revenue ROI (shown for contrast)
- (revenue generated − marketing spend) ÷ marketing spendThe flattering version — it ignores cost of goods entirely.
- ROMI multiple
- revenue generated ÷ marketing spend
Worked example
- Say you spent $10,000 on a campaign that generated $45,000 in revenue, and your gross margin is 50%.
- Gross profit from the campaign = $45,000 × 0.50 = $22,500.
- Net profit from the spend = $22,500 − $10,000 = $12,500.
- Marketing ROI = $12,500 ÷ $10,000 = 125% — the campaign more than doubled your money after costs.
- For contrast, revenue ROI = ($45,000 − $10,000) ÷ $10,000 = 350%, and the ROMI multiple is $45,000 ÷ $10,000 = 4.5×. Both look far better than the real 125% because they ignore the cost of the goods sold.
Rates, benchmarks & sources
- ROI bands used to color the verdict: below 0% lost money, 0–100% positive but modest, above 100% doubled your money after costs. These are conventions, not standards. — Rule of thumb (interpretation bands)
- ROI measured on gross profit (revenue × margin), not raw revenue; ROMI = revenue ÷ spend. — Standard marketing-finance definition
Figures current as of 2026-07-02. See our methodology & editorial standards for how constants are versioned and verified.
What this tool doesn’t model
- Results are only as good as your attribution. The "revenue generated" input assumes you correctly credited that revenue to this campaign — if some of those customers would have bought anyway, or another channel deserves part of the credit, the real ROI is lower than shown.
- Uses a single blended gross margin. If the campaign sold a mix of high- and low-margin products, use the margin of what it actually sold.
- Ignores overhead, staff time, and agency fees unless you fold them into the spend figure — a campaign can clear this bar and still not cover the labor behind it.
- Measures one period in isolation. It does not credit repeat purchases from customers the campaign acquired; a campaign with negative first-order ROI can still pay off through lifetime value.
Frequently asked questions
What is the difference between ROI and ROAS?
ROAS (return on ad spend) is revenue divided by spend — a $45,000 return on $10,000 is a 4.5× ROAS. ROI is profit-based: it subtracts both the spend and the cost of the goods sold, then divides by the spend. A campaign can have a healthy-looking ROAS and a negative ROI at the same time, which is exactly the trap this calculator is built to expose.
Why does the calculator apply my gross margin to campaign revenue?
Because revenue is not money you keep. If your margin is 50%, every $100 of campaign revenue only leaves $50 to pay for the ad that generated it. Judging a campaign on revenue alone systematically overstates its value — margin-based ROI is the number that decides whether the campaign was worth running.
What counts as a good marketing ROI?
The tool uses a rule-of-thumb scale: below 0% the campaign lost money, 0–100% it made a modest profit, and above 100% it more than doubled your money after costs. There is no official threshold — an acceptable ROI depends on your alternatives, your cash position, and whether acquired customers come back and buy again.
How do I know how much revenue a campaign really generated?
That is the attribution problem, and it is the weakest link in any ROI calculation. Promo codes, dedicated landing pages, and post-purchase "how did you hear about us" surveys give more trustworthy numbers than platform-reported conversions, which tend to over-credit themselves. Whatever method you use, apply it consistently so campaigns are at least comparable to each other.
My campaign shows a negative ROI — was it worthless?
Not necessarily. This tool measures first-order profit only: if the customers the campaign acquired make repeat purchases, their lifetime value can turn a negative first-order ROI positive over time. But treat that as a hypothesis to verify with your own repeat-purchase data, not a reason to keep funding a losing campaign indefinitely.
Related calculators
themoneysheet provides educational estimates, not financial, tax, or legal advice. Figures use published rates and formulas current as of the date shown, but your situation may differ. Consult a qualified professional (CPA, attorney, or licensed advisor) before making financial decisions.