ROI Calculator for Marketing Campaigns

Calculate your marketing ROI to find out how effective your marketing activities are.

Revenue
How much money you earned in a week, month, year
Fill in any of these fields:
Margin
Margin is the difference between cost price and retail price in percentages. For example, the average margin in e-commerce is 20–25%.
Cost price
Cost price is how much money you spent on production or purchasing the goods for sale.
Marketing costs
These include the salaries of marketing department employees, paid traffic expenses, and marketing software subscriptions over the same period of time as your revenue above.

Uh-oh! Looks like you’re in the negative. Check the numbers for misprints — or reconsider your marketing strategy for a better ROI.

You earned all your marketing expenses back. But can you do better? Of course! There are many ways to increase ROI — for example, work on customer loyalty for a better LTV.

Your ROI is insane! Keep going, you’re doing great. By the way, would you like to write a case study for our blog? We’d be so excited to work with you!

What is marketing ROI (ROMI)

Return On Investment (ROI) helps entrepreneurs and businesses with tracking how much money they earn from something they invest in. 
ROI =
Net Revenue
Cost of Investment
So, what marketing campaigns can bring to your table? For example, email marketing ROI is 42:1 or 4200% as ROI is measured in percentage, which means you get $42 back for every $1 invested. 

Why calculate marketing ROI

Digital marketers typically use another, more specific variation of ROI, Return On Marketing Investment (ROMI), to accurately measure their campaign performance and see how much money they are making on their marketing spend.

ROMI =
Revenue Marketing Costs
Marketing Costs
× 100%
For example, if you invested $1 in email marketing and got $42 back, that's a 4100% ROMI.

But what if you use more than one marketing channel to attract customers? For example, you combine email and social media to get better results. Here's a more specific calculation of total return for this case, rather than the basic formula

ROMI =
Total Revenue Social Media Sales Revenue Marketing Costs
Marketing Costs
× 100%

So you know exactly how much money each of your marketing channels is bringing in.

How to use marketing ROI calculator

Selzy Selzy Selzy
Selzy
1

Total revenue

Use this marketing ROI calculator to see how much money you have made in a given period of time, such as a week, month, or year.

Selzy
2

Conversions generated

Include the conversion rate for your marketing campaign in this ROI calculator template. Remember to provide all metrics that you used previously for the same time period.

Selzy
3

Amount spent

Type in the amount of money you invested in the production or purchase of goods if you are selling something, or in marketing if you are running marketing campaigns.

Why is this rate difficult to calculate

Attribution

Why is calculating ROI difficult? Let's take an ad copy as an example.

You have several options for how to promote your services or goods with this copy — post it on social media, send it as an email, or even put up a banner on the street. It's extremely difficult to predict in advance which attribution model will achieve more or less success in terms of ROI, especially if you have no prior experience with it.

Indirect effects

There can always be some influence from random factors such as holidays or worse — crises — that can affect costs per click for your ads and disrupt the entire performance of your campaigns and lead you to make the wrong decisions about the ROI.

Long-term value

Some marketing channels take time to reach their full potential, while others (like email) deliver the most value in the first 24 to 48 hours. This makes it difficult to compare different strategies and calculate ROI if you just ran your first campaign a month ago.

Unmeasurable value

For every marketing activity and campaign type, there are side benefits that, unlike ROI, you can't count directly — brand awareness, audience engagement and loyalty. Make sure you pay enough attention to the top of the sales funnel as the first point of contact with your customer, which has a huge impact on customer lifetime value.

What is good marketing ROI

There are no general benchmarks for ROI measures, saying this ROI is below average and that is good overall. It depends on several factors like your business objectives and industry, marketing channel, time period, and the services you provide or goods you sell.
When it comes to email marketing, $36 to $42 earned for every $1 spent is considered a golden ROI benchmark that is definitely within your reach.