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ROI Calculator (Return on Investment)
Discover if your campaigns are making money with our simple ROI Calculator.
Proving the value of a marketing campaign can be tough. Showing which campaign brought the best results can be even harder.
That’s where this ROI Calculator comes in. By calculating Return on Investment (ROI), you can easily see if your campaigns are profitable and identify which ones bring the most value.
Proving the value of a marketing campaign can be tough. Showing which campaign brought the best results can be even harder.
That’s where this ROI Calculator comes in. By calculating Return on Investment (ROI), you can easily see if your campaigns are profitable and identify which ones bring the most value.
Table of Contents
- ROI Calculator
- What Is ROI?
- How to Calculate ROI
- What Is a Good ROI?
- Challenges of Calculating ROI
- Alternative ROI Formulas
ROI Calculator
See Your ROI in Seconds
This calculator helps you measure your ROI and explore different scenarios. Want to know how much you need to earn to hit your goals? Enter your numbers below and get instant results.
ROI Calculator
How much money you earned in a week, month, year
COGS 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.
What Is ROI?
ROI stands for Return on Investment. It’s a way to measure how profitable your campaigns are compared to what you spent on them.
Unlike profit, ROI shows a ratio or percentage, which makes it easier to compare campaigns or activities. It answers questions like:
Are your campaigns profitable?
How much profit are you making for every dollar, pound, or euro spent?
Unlike profit, ROI shows a ratio or percentage, which makes it easier to compare campaigns or activities. It answers questions like:
Are your campaigns profitable?
How much profit are you making for every dollar, pound, or euro spent?
How to Calculate ROI
The ROI formula is straightforward:
ROI = (Revenue − COGS − Marketing Costs) / (COGS + MarketingCosts) × 100%
Example:
ROI = (Revenue − COGS − Marketing Costs) / (COGS + MarketingCosts) × 100%
Example:
- Revenue: $10,000
- COGS: $4,000
- Marketing Costs: $1,000
What Is a Good ROI?
A positive ROI means you earned more than you spent. But how do you know if your ROI is good?
Here’s a quick guide:
Positive ROI (> 0%): You’re earning more than you’re spending.
Acceptable ROI (30% or 1.3:1): You’ve gained 30% on top of your in investment.
Excellent ROI (500% or 5:1): You’re getting $5 back on top of every $1 spent.
These benchmarks can vary based on your industry and campaign type. For instance, retargeting campaigns often show higher ROI, while cold outreach campaigns may take time to become profitable.
Here’s a quick guide:
Positive ROI (> 0%): You’re earning more than you’re spending.
Acceptable ROI (30% or 1.3:1): You’ve gained 30% on top of your in investment.
Excellent ROI (500% or 5:1): You’re getting $5 back on top of every $1 spent.
These benchmarks can vary based on your industry and campaign type. For instance, retargeting campaigns often show higher ROI, while cold outreach campaigns may take time to become profitable.
Challenges of Calculating ROI
Calculating ROI is not always simple. Here are some reasons why:
Attribution Problems
If someone sees an ad, reads a blog, and then clicks your email, who gets credit for the sale? Attribution is complicated.
Indirect Effects
Campaigns often raise brand awareness or improve reputation, which can lead to future sales. These benefits are hard to measure directly.
Lifetime Value (LTV)
Some customers keep buying from you over time. Including LTV in your ROI can change how you view success, but it’s not always easy to calculate.
Unmeasurable Impacts
Not everything is trackable. A customer might see a flyer, save your number, and call six months later. These actions often go unnoticed.
Attribution Problems
If someone sees an ad, reads a blog, and then clicks your email, who gets credit for the sale? Attribution is complicated.
Indirect Effects
Campaigns often raise brand awareness or improve reputation, which can lead to future sales. These benefits are hard to measure directly.
Lifetime Value (LTV)
Some customers keep buying from you over time. Including LTV in your ROI can change how you view success, but it’s not always easy to calculate.
Unmeasurable Impacts
Not everything is trackable. A customer might see a flyer, save your number, and call six months later. These actions often go unnoticed.
Alternative ROI Formulas
Another way to calculate ROI is:
Where Net Profit is:
This method simplifies the calculation, but it requires knowing your net profit upfront. Whichever formula you use, make sure all relevant costs are included for accurate results.
Ready to Calculate Your ROI?
Whether you’re running ads, email campaigns, or social media promotions, ROI is the key to understanding your success. Use the calculator above to find out which campaigns are worth it and how to optimize your strategy.