Marketing ROI Calculator & Campaign Return Guide
Marketing ROI measures the profitability of marketing spend. Unlike general ROI, marketing ROI isolates revenue or profit attributable to campaigns against the cost of running them. This guide covers the formula, how it differs from ROAS, and how to avoid common attribution pitfalls.
What Is Marketing ROI?
Marketing ROI is the return generated from marketing investment, expressed as a percentage. It answers: for every dollar spent on marketing, how much profit or revenue did we get back? Marketers use it to justify budgets, compare channels, and optimize spend. A 300% marketing ROI means $3 of return for every $1 invested.
The definition varies by company. Some use revenue; others use profit (after gross margin or net margin). For consistent comparison, define your numerator and denominator and stick to them. See our What Is ROI? guide for the foundational concept.
Marketing ROI Formula
The standard formula is:
Marketing ROI = [(Revenue or Profit from Marketing − Marketing Cost) / Marketing Cost] × 100
If you spend $10,000 on a campaign and it generates $35,000 in attributable revenue, Marketing ROI = [(35,000 − 10,000) / 10,000] × 100 = 250%. Using profit instead of revenue gives a lower but more accurate number, since it accounts for cost of goods sold and fulfillment.
ROI vs ROAS
ROAS (Return on Ad Spend) measures revenue per dollar spent, without subtracting costs. Formula: ROAS = Revenue from Ads / Ad Spend. A $1,000 ad spend that drives $5,000 in revenue has a ROAS of 5:1, or 500%. ROAS is simpler but ignores margin; a 5:1 ROAS on low-margin products may still lose money. Marketing ROI subtracts costs and reflects true profitability. Use our ROAS calculator to compare both metrics.
Cost Per Lead vs ROI
Customer Acquisition Cost (CAC) and cost per lead (CPL) are inputs to marketing ROI, not substitutes. CPL tells you how much you pay per lead; ROI tells you whether the full funnel (leads → customers → revenue) is profitable. A low CPL with poor conversion or high churn rate can still yield negative ROI. Model the full path: CPL × leads → customers × LTV, then compare to total marketing cost.
Digital Channel Comparison
Different channels have different economics. Paid search often shows strong intent and measurable ROI but higher CPL. Display and social can have lower CPL but longer attribution windows and noisier data. Email typically has the lowest marginal cost and highest ROI per message, though list growth and engagement matter. See our email marketing ROI and lead generation ROI pages for channel-specific guidance. Compare channels on a profit basis when possible, not just revenue.
Example Campaign Calculation
You run a $15,000 Facebook campaign. It generates 400 leads. Forty convert to customers. Average order value is $500; gross margin is 60%. Revenue = 40 × $500 = $20,000. Gross profit = $20,000 × 0.60 = $12,000. Marketing ROI = [(12,000 − 15,000) / 15,000] × 100 = −20%. The campaign loses money despite positive revenue. Lower CPL, higher conversion, or higher AOV would be needed to reach positive ROI.
Common Attribution Mistakes
- Last-click only: Credits the last touchpoint; undervalues top-of-funnel. Multi-touch models spread credit across the journey.
- Ignoring time decay: Treats a click from 30 days ago the same as yesterday. Time-decay attribution favors recent touches.
- Comparing channels with different windows: Search often converts quickly; brand or social may have longer delays. Use consistent windows.
- Including brand searches in paid ROI: Brand terms may convert even without ads. Incrementality tests help isolate true lift.
Marketing ROI Benchmarks
| Channel | Typical ROI Range | Notes |
|---|---|---|
| 36:1 to 42:1 | Highest median ROI; mature lists, low marginal cost | |
| Paid search | 200–400% | Varies by industry, keyword, and margin |
| Social paid | 100–250% | B2B often lower; B2C varies by product |
| Content/organic | Long-term | Hard to attribute; often modeled |
Benchmarks are illustrative. Your economics depend on margin, CAC, and LTV. Use the main ROI calculator for custom scenarios.
Frequently Asked Questions
What is a good marketing ROI?
There is no universal target. B2B often targets 5:1 or higher (500%) due to longer sales cycles. E‑commerce may accept 200–300% depending on margin and growth goals. Compare to your cost of capital and other uses of cash.
Should I use revenue or profit for marketing ROI?
Profit is more accurate. Revenue can show positive ROI while the business loses money if margins are low. Use gross profit at minimum; net profit if you can allocate fixed costs.
What is the difference between marketing ROI and ROAS?
ROAS = Revenue / Ad Spend. It does not subtract costs. Marketing ROI = (Profit − Cost) / Cost × 100. ROI reflects profitability; ROAS reflects revenue efficiency. High ROAS does not guarantee positive ROI.
How do I attribute revenue to marketing?
Options include last-click, first-click, linear, time-decay, and data-driven models. Use a model that matches your sales cycle and data quality. Test incrementality when possible to isolate true lift.
Why does my marketing ROI vary by channel?
Channels differ in intent, conversion rate, latency, and attribution visibility. Paid search often converts faster; social and display may take longer. Use consistent attribution windows and compare profit, not just revenue.