Marketing ROI Formula: How to Measure Campaign Profit
Marketing ROI helps you understand whether a campaign made money or only created activity. It is useful for Facebook ads, Google ads, influencer campaigns, email promotions and offline campaigns.
Marketing ROI formula
Marketing ROI = (Revenue from campaign – Campaign cost) / Campaign cost x 100
If a campaign makes $1,500 revenue and costs $500, ROI is 200% before product cost. For real profit, include gross margin too.
ROI vs ROAS
ROAS compares revenue with ad spend. ROI compares profit or return with total cost. ROAS can look good even when profit is weak.
What to track
- Ad spend
- Creative cost
- Landing page cost
- Revenue
- Gross margin
- Orders or leads
Use the calculator
Use the Marketing ROI Calculator for ROI, ROAS, CPA and break-even revenue. More campaign tools are available in Free Marketing Tools.