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Marketing ROI Calculator

Calculate marketing ROI from incremental revenue, gross margin, ad spend, labor, tools, and agency costs.

Example: $50,000
$
Example: 60%
%
Example: $10,000
$
Advanced assumptions Optional fees, reserves, and planning targets
Example: $2,000
$
Example: $500
$
Example: $3,000
$
Example: $500
$
Example: 100%
%

Review the result

Marketing ROI
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Marketing profit
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Total marketing cost
--
Break-even revenue
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Revenue for target ROI
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Ad ROAS
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How to use this calculator

Use gross profit, not revenue, in ROI

Revenue does not all belong to marketing. Apply gross margin first, then subtract the full marketing cost. This prevents a high-revenue, low-margin campaign from looking more profitable than it is.

Include the costs needed to run the program

Ad spend is only one part of marketing cost. Add agency fees, software, internal labor, production, and any other cost that belongs to the same initiative.

Separate ROI from ROAS

ROAS divides attributed revenue by ad spend. Marketing ROI compares incremental gross profit with the wider marketing cost. The two metrics answer different questions.

Formula quick reference

  • Incremental gross profit = incremental revenue x gross margin
  • Total marketing cost = ad spend + agency + tools + labor + other costs
  • Marketing profit = incremental gross profit - total marketing cost
  • Marketing ROI = marketing profit / total marketing cost x 100
  • Break-even revenue = total marketing cost / gross margin
  • Revenue for target ROI = total marketing cost x (1 + target ROI) / gross margin

Worked example

Campaign ROI example

Inputs: $50,000 incremental revenue at 60% gross margin and $16,000 total marketing cost

Result: $14,000 marketing profit and 87.5% marketing ROI

Note: A 100% ROI target would require about $53,333 in incremental revenue at the same margin and cost.

Common mistakes

  • Using attributed revenue without applying gross margin.
  • Leaving out labor, tools, creative, or agency costs.
  • Treating all revenue during the campaign as incremental.

What the result means

  • A useful target depends on payback time, cash flow, customer retention, and measurement confidence.
  • Run a range when attribution or incrementality is uncertain.

Marketing ROI Calculator FAQ

How do I calculate marketing ROI?

Multiply incremental revenue by gross margin, subtract total marketing cost, then divide the remaining marketing profit by total marketing cost and multiply by 100.

What costs should I include in marketing ROI?

Include ad spend plus agency, freelancer, software, production, internal labor, and other costs used to run the initiative.

What is the difference between marketing ROI and ROAS?

ROAS compares revenue with ad spend. Marketing ROI uses incremental gross profit and includes the wider cost of running marketing.

What is break-even marketing revenue?

It is the incremental revenue needed for gross profit to equal the total marketing cost at the margin entered.

Should I use total or incremental revenue?

Use incremental revenue when possible: the revenue that would not have occurred without the marketing activity. Total revenue can overstate the result.