Free Tool

Marketing ROI Calculator

Calculate true return on investment including all marketing costs. Not just ad spend — see your complete marketing profitability.

Revenue attributed to marketing

Google, Facebook, etc.

For CPA calculation

Marketing ROI
900%

10.0:1 ratio

Net Profit
$45,000

revenue - all costs

Total Marketing Costs
$5,000

all included costs

Cost Per Acquisition
$50

per customer

Excellent

Outstanding return. Your marketing is highly effective.

How to Calculate Marketing ROI

Marketing ROI measures the return on your total marketing investment, not just ad spend. Unlike ROAS, ROI accounts for all costs including agency fees, creative production, tools, and team salaries — giving you a true picture of marketing profitability.

ROI = ((Revenue - Total Marketing Costs) / Total Marketing Costs) × 100

Example: You generate $50,000 in revenue from marketing that cost $10,000 total. ROI = (($50,000 - $10,000) / $10,000) × 100 = 400%.

What is a Good Marketing ROI?

A good marketing ROI depends on your industry, business model, and growth stage. Here are general benchmarks:

Negative ROI — Losing Money

Marketing costs exceed revenue. Review attribution, costs, and channel performance immediately.

0-200% ROI — Break-even to Marginal

Profitable but thin margins. Acceptable for growth-focused startups, but optimize where possible.

200-500% ROI — Good

Solid return on marketing investment. Continue optimizing and consider scaling successful channels.

500%+ ROI — Excellent

Outstanding return. Your marketing is highly effective. Scale aggressively.

ROAS vs ROI: When to Use Each

Both metrics measure return, but they serve different purposes. Understanding when to use each helps you make better marketing decisions.

ROAS (Return on Ad Spend)

  • • Revenue ÷ Ad Spend only
  • • Ignores other marketing costs
  • • Best for optimizing ad campaigns
  • • Use for platform-level decisions

ROI (Return on Investment)

  • • Profit ÷ All marketing costs
  • • Includes everything
  • • Best for business decisions
  • • Use for budget allocation

Rule of thumb: Use ROAS for day-to-day campaign optimization. Use ROI for strategic decisions about marketing budget, hiring, and channel investment.

What Costs to Include in Marketing ROI

For accurate ROI, include all costs directly related to your marketing efforts:

Cost CategoryExamples
Ad SpendGoogle Ads, Facebook Ads, LinkedIn Ads, TikTok Ads
Agency FeesMarketing agency retainers, PPC management fees
Creative ProductionDesign, video production, copywriting, photography
Tools & SoftwareAnalytics, CRM, email marketing, SEO tools
Team CostsMarketing team salaries, freelancer payments
OtherEvents, sponsorships, influencer payments, PR

Frequently Asked Questions

How do I attribute revenue to marketing?

Use attribution models in your analytics: first-touch (credit to first interaction), last-touch (credit to final interaction before purchase), or multi-touch (distributed credit). For B2B with long sales cycles, consider time-decay attribution. Most businesses start with last-touch and refine over time.

Should I include team salaries in marketing ROI?

Yes, for accurate ROI you should include the portion of team salaries dedicated to marketing. If a marketer spends 100% of their time on marketing, include their full salary. If they split time, allocate proportionally. This gives you true cost of marketing operations.

How do I calculate ROI for brand marketing?

Brand marketing ROI is challenging because results are indirect. Track brand metrics (awareness, consideration, recall) alongside business metrics (direct traffic, branded search volume, organic conversions). Calculate ROI using revenue from brand-attributed channels over brand marketing costs.

What timeframe should I use for marketing ROI?

Match your timeframe to your sales cycle. E-commerce can calculate monthly ROI. B2B with 6-month sales cycles should use 6-12 month windows. For content marketing or SEO, allow 6-12 months for investments to mature before judging ROI.

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