Reference · Updated May 2026

Marketing ROI formula — with worked examples and variants

The core formula for marketing ROI, three worked examples in different scenarios, and a comparison of all the variants (ROI, ROMI, ROAS, margin-adjusted ROI).

Updated May 2026Free calculator included

The marketing ROI formula

Marketing ROI = (Revenue − Cost) ÷ Cost × 100
Result is a percentage. 100% = break-even. 300% = $4 back for every $1 spent.

For a profit-adjusted calculation that accounts for your gross margin:

ROI = ((Revenue × Margin%) − Cost) ÷ Cost × 100
Use this version when comparing ROI across channels with different product margins

Three worked examples

Example 1 — Google Ads campaign

Spend: $5,000 (ad spend) + $1,000 (agency fee) = $6,000 total. Revenue attributed: $28,000. Gross margin: 55%.

($28,000 × 55% − $6,000) ÷ $6,000 × 100 = 157%
Profit-adjusted ROI. Revenue-based ROAS would show 467% — inflated by ignoring margin and agency fees.

Example 2 — Email campaign

Spend: $600 (platform + copywriting). Revenue attributed: $22,000. Gross margin: 70%.

($22,000 × 70% − $600) ÷ $600 × 100 = 2,467%
24.7:1 ratio — below the 36:1 average but still very strong. List segmentation could improve this significantly.

Example 3 — Content marketing (12-month view)

Spend over 12 months: $24,000 (writer, SEO tools, design). Attributed organic revenue in month 12: $8,000/month × 3 months of meaningful traffic = $24,000. Still at break-even at 12 months — but growing monthly.

Content ROI compounds. The same $24,000 investment typically delivers $144,000+ in attributed revenue over 36 months as rankings mature and compound. Measuring at 12 months only captures the earliest returns. Use our content ROI calculator with multi-year model →

Formula variants — ROMI, ROAS, and blended ROI

MetricFormulaWhen to use
Marketing ROI(Revenue − Total Cost) ÷ Total Cost × 100Evaluating overall marketing profitability
ROMISame as ROI applied to marketing spendInterchangeable with Marketing ROI; used in larger organisations
ROASRevenue ÷ Ad SpendComparing individual ad campaigns; does not account for margin or all costs
Margin-adjusted ROI(Revenue × Margin% − Cost) ÷ Cost × 100When comparing channels with different product margins
LTV-adjusted ROIUses LTV instead of immediate revenueSaaS and subscription businesses with long customer lifetimes

Frequently asked questions

Marketing ROI = (Revenue Generated − Marketing Cost) ÷ Marketing Cost × 100. Revenue is attributed revenue from the campaign. Cost includes all marketing investment: ad spend, agency fees, tools, and team time. A result of 300% means you generated $4 for every $1 spent.
ROMI (return on marketing investment) is the same calculation as marketing ROI, applied specifically to marketing spend. The terms are used interchangeably. Some larger organisations use ROMI to distinguish marketing returns from broader capital investment returns tracked by finance teams.
A 300% ROI and a 4:1 ratio describe the same result. ROI percentage = (Revenue − Cost) ÷ Cost × 100. Ratio = Revenue ÷ Cost. To convert: ratio = (ROI% ÷ 100) + 1. So 300% ROI = 4:1 ratio. Industry benchmarks often use both — email is quoted as 36:1 (3,500% ROI), PPC as 4:1 (300% ROI).
Break-even ROI is the minimum ROI where you cover all costs and make zero profit. For revenue-based ROI, break-even is 0%. For margin-adjusted ROI, break-even depends on gross margin: Break-even ROI = (1 ÷ Gross Margin) × 100 − 100. At 50% margin, break-even ROI = 100%. At 25% margin, break-even = 300%.

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