Marketing ROI Calculator
Calculate marketing ROI from net profit generated and marketing cost — a profit-based metric, distinct from ROAS.
Formula
Marketing ROI = (Net Profit Generated − Marketing Cost) ÷ Marketing Cost × 100
This is not the same calculation as ROAS. ROAS is revenue divided by spend; ROI here is built from profit, not revenue. A ROAS of 2 does not mean a 100% ROI — it depends entirely on margin. Use the ROAS Calculator for the revenue-based ratio, and this calculator when you have (or can estimate) an actual profit figure.
Worked Example
$5,000 in marketing cost generates $5,000 in revenue at a 60% contribution margin — $3,000 in net profit. ROI = ($3,000 − $5,000) ÷ $5,000 × 100 = -40%. Despite a ROAS of exactly 1.0 looking break-even on paper, this campaign lost money once product costs are factored in.