Marketing ROI Calculator
Measure the return on a marketing campaign from the revenue it brought and the amount spent, showing both ROI and ROAS.
Recent
Formula
How the calculation works
The calculator subtracts the marketing spend from the revenue to get the net profit the campaign produced.
It divides that net profit by the spend and multiplies by one hundred to express the return on investment as a percentage.
It also divides revenue by spend to give the return on ad spend as a simple multiple, which many ad platforms report.
Common mistakes
- Using total company revenue instead of the revenue the campaign actually generated, which overstates the return.
- Forgetting costs of goods and agency fees, since ROI is only meaningful when the spend figure includes everything the campaign cost.
When to use it
- Business owners use it to decide which campaign deserves more budget next month and which one to cut.
- Freelancers and agencies use it to show clients the exact return on the money they invested in advertising.
Worked example
With 200000 taka of revenue from 50000 taka of marketing spend, the net profit is 150000 taka, the ROI is 300 percent and the ROAS is 4 times.
Common questions
What is the difference between ROI and ROAS?
ROI shows net profit as a percentage of spend, while ROAS shows gross revenue as a multiple of spend, so ROAS can look strong even when profit is thin.
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