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Finance formula

How to calculate marketing ROI

Marketing ROI estimates how much return a campaign produced for each dollar spent.

See the formulaOpen calculator
Direct answer
Formula
Marketing ROI = (revenue - marketing cost) / marketing cost * 100

Use the table below to match each symbol with the right input. Keep units consistent before you start.

Marketing ROI formula
Start here when you only need the equation and variable names.
Formula
Marketing ROI = (revenue - marketing cost) / marketing cost * 100

Marketing ROI estimates how much return a campaign produced for each dollar spent.

Variable meanings
Check each symbol, meaning, and unit before you calculate.
SymbolNameDescriptionUnit
revenueAttributed revenueSales linked to the campaign.currency
marketing costMarketing costTotal campaign spend.currency
When to use this formula
Check that your situation matches the formula before you trust the result.
  • Best after a campaign, once you can tie revenue to spend with a clear attribution window.
Step-by-step method
Follow these steps when you are solving it by hand.
  1. 1Add ad spend, tools, agency fees, and campaign labor when they belong to the campaign.
  2. 2Measure revenue attributed to that campaign.
  3. 3Subtract marketing cost from revenue.
  4. 4Divide by marketing cost and multiply by 100.
Examples
These sample numbers show the order of operations and units.
Paid search campaign
revenue
$42,000
marketing cost
$10,000
  1. 1.Marketing ROI = (42000 - 10000) / 10000 * 100
  2. 2.Marketing ROI = 32000 / 10000 * 100
  3. 3.Marketing ROI = 320%
Result
The campaign returned 320%.
Unprofitable test
revenue
$2,000
marketing cost
$2,500
  1. 1.Marketing ROI = (2000 - 2500) / 2500 * 100
  2. 2.Marketing ROI = -500 / 2500 * 100
  3. 3.Marketing ROI = -20%
Result
The campaign lost 20% before other costs.
Mistakes to avoid
Small input or unit errors can change the answer a lot.
  • Using an annual rate where the marketing roi formula needs a monthly or period rate.
  • Entering 8 instead of 0.08 when the formula calls for a decimal rate.
  • Comparing results across different time periods without converting them first.
  • Rounding each step instead of rounding the final answer.
Open the Marketing ROI Calculator
Open the calculator for the answer without rewriting the formula.

Enter your values in the related calculator, then compare the output with the hand method above.

Open Marketing ROI Calculator
FAQs
Short answers for common formula questions.
Can I calculate Marketing ROI by hand?

Yes. Write the units next to each value, convert rates or measurements first, and round only the final answer.

Why does my Marketing ROI result differ from another calculator?

Most differences come from rounding, unit conversions, rate timing, or a slightly different version of the formula.

When is the Marketing ROI Calculator better than hand math?

Open the Marketing ROI Calculator to check several scenarios or skip the hand arithmetic.