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ROI & Cost Calculators

Marketing ROI Calculator

Calculate the return on investment for your marketing campaigns. See your true ROI, net profit, and project future returns.

Total ad spend, agency fees, etc.

Revenue attributed to marketing

Software, tools, contractor costs

Understanding and Improving Your Marketing ROI

Marketing ROI (Return on Investment) is the most critical metric for measuring the effectiveness of your marketing spend. It tells you exactly how much revenue you're generating for every dollar invested in marketing.

What is a Good Marketing ROI?

The benchmark for marketing ROI varies by industry and channel, but here are general guidelines:

  • 5:1 (400% ROI): Considered strong. For every $1 spent, you're generating $5 in revenue.
  • 10:1 (900% ROI): Exceptional performance, typically seen in highly optimized campaigns.
  • 2:1 (100% ROI): Break-even for most businesses after accounting for costs of goods sold.
  • Below 2:1: May indicate the need for optimization or channel reallocation.

How to Calculate Marketing ROI

The basic marketing ROI formula is:

ROI = ((Revenue from Marketing - Marketing Cost) / Marketing Cost) x 100

For example, if you spent $10,000 on marketing and generated $50,000 in revenue:

ROI = (($50,000 - $10,000) / $10,000) x 100 = 400%

Average Marketing ROI by Channel

Email Marketing

Average ROI: 36:1 ($36 for every $1 spent)

SEO

Average ROI: 22:1 (long-term investment)

Paid Search (PPC)

Average ROI: 2:1 to 8:1 (varies by industry)

Social Media Ads

Average ROI: 2:1 to 5:1 (platform dependent)

Tips to Improve Your Marketing ROI

  • Track attribution accurately: Use proper attribution models to understand which channels drive revenue.
  • Focus on high-intent channels: Invest more in channels that attract ready-to-buy prospects.
  • Optimize landing pages: Improve conversion rates to get more value from existing traffic.
  • Reduce customer acquisition cost: Test creative, audiences, and messaging to lower CPL.
  • Increase customer lifetime value: Focus on retention and upsells to maximize each acquisition.
  • A/B test everything: Continuously optimize campaigns based on data.

Common ROI Calculation Mistakes

  • Ignoring all costs: Don't forget software, agency fees, and labor costs.
  • Wrong attribution window: B2B sales cycles can be 6-12+ months.
  • Vanity metrics: Likes and impressions don't equal revenue.
  • Not accounting for COGS: Gross revenue isn't the same as profit.
  • Single-touch attribution: Most conversions involve multiple touchpoints.

Want to Maximize Your Marketing ROI?

Our team runs pay-per-meeting campaigns that deliver predictable ROI. You only pay for results, making your ROI calculation simple.

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