Marketing ROI Calculator

How much money you earned in a week, month, year
FILL IN ANY OF THESE FIELDS:
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 is how much money you spent on production or purchasing the goods for sale.
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.

Disclaimer: This calculator provides estimates based on the input values. Actual ROMI may vary based on various factors including attribution models, indirect costs, and market conditions.

Marketing ROI calculator is a tool designed to help you calculate your return on investment. It’s important to calculate your ROI to ensure your pricing strategy is correct. Without knowing your ROI, you may leak your budget or never get sales at all.

 

Return on investment means how much you get back on your investment. In digital marketing, it is used to calculate your profitability. Your investment includes not just your product, but your marketing expenses too. As a result, marketers tend to need an online marketing ROI calculator like Adsbot’s. Save this page to quickly calculate marketing ROI and keep reading to know more about it.

 

What is Marketing ROI?

Marketing ROI means the amount you are getting after your expenses. It shows you how profitable your products are so that you can strategize accordingly. The higher your ROI percentage, the better.

 

Yet, marketers tend to mix up ROI and ROAS. While they are similar to each other, they are different. ROAS means return on ad investment. It is specific to your ad campaigns, while ROI is the more general one, determining your whole budget.

 

In terms of budget, marketing ROI is essential for budget allocation decisions, campaign performance evaluations, justifying higher budgets, and identifying high-performing channels and campaigns.

 

Marketing ROI Calculation Formula

When you ask the question of “How do you calculate ROI in marketing?” you need to know the formula. Marketing ROI calculation formula is as follows:

 

(Revenue Generated – Marketing Investment) / Marketing Investment × 100

 

Now, let’s break down this formula. “Revenue generated” includes everything you sell and is the amount you get from your business. “Marketing investment” is the total cost you spend on marketing campaigns on platforms such as Google Ads or Meta Ads. 

 

For example, let’s say you generated a 1000$ revenue and your marketing investment is 200$. Your ROMI (return on marketing investment) would be: 

(1000 – 200) / 200 x 100 = 800 / 2 = 400%

 

Note: Do not forget to include all revenue you get from your marketing campaigns.

 

How to Calculate Marketing ROI

To calculate your marketing ROI, first, define your time period and campaign scope. After that:

  • Gather revenue data (direct sales, attributed conversions, lifetime value)
  • Then, put your total revenue for that specific period into the Adsbot’s widget’s first line.
  • Calculate total marketing costs (ad spend, tools, labor, creative production)
  • Put your marketing cost into the widget.

Lastly, the tool will calculate your ROMI and give you a value. Interpret and contextualize your results in order to get the best from your marketing budget.

 

Why measure marketing ROI

You can measure your marketing campaign’s performance using numerous different metrics. Do you even require ROIs if you have conversions and revenue from sales? The short answer is yes, and here’s why.

If you track this measure, you can make smarter monetary decisions. For example, you may discover that your email marketing ROI is below expectations, not due to the fact that your emails are poor quality but because your email marketing tool is overpriced.

Enhance your strategy: When it’s about content marketing, it doesn’t just work by creating good content. You definitely need to have some sort of quality control. But if a good copy brought some attention to your brand but didn’t bring you sales, is it even a good copy?

Unlike click-through or open rates, ROMI is perhaps the sole measure that assesses how well your marketing program performs from the financial point of view. Including ROMI among your marketing metrics allows you to make adjustments to your email content approach or the strategy as a whole and enhance your campaigns.

 

What is a good marketing ROI

Previously, we calculated a figurative scenario and got 400% – but is it good? Most sources suggest a 500% marketing ROI is good and anything less than 200% is not profitable. But it’s slightly more complicated. The “good” marketing ROI depends on:

  • The marketing channel: For instance, the average Google Ads ROMI is taken to be 200%, the average SEO ROMI across any industry is 825%, and email marketing has a staggering 3,600% ROMI.
  • Your marketing objectives: It’s difficult to measure the ROI of awareness campaigns since they don’t pay off immediately and aren’t designed to sell. That’s why it’s more sensible to have lower monetary success metrics for campaigns such as these. That said, if your sales emails return less than 200%, you may be doing something incorrectly.
  • Time: ROI is a time-based measure and not every marketing channel works immediately. For instance, the above 825% SEO ROI is an average over 3 years, and breaking time can take as much as 14 months based on the industry. The moral of the story is, each business is unique, and the “ideal” ROMI varies based on numerous factors. Keep these factors in mind when you’re establishing ROMI targets for your campaigns. And if you’re launching a marketing campaign from the ground up with no advertising previously, begin by trying to achieve a positive ROI and break even.

And that’s everything you need to know about marketing ROI calculation! If you intend on tracking ROMI on a regular basis, save this page for fast access.