Calculate your marketing return on investment. Know exactly how much revenue each dollar of ad spend generates.
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ROI measures the profit generated from marketing investments. Formula: (Revenue - Investment) / Investment × 100. A 300% ROI means you made $3 for every $1 spent.
ROAS (Return on Ad Spend) measures revenue per dollar spent. ROI measures profit. A $5 ROAS might only be 200% ROI after accounting for product costs.
Use UTM parameters, conversion pixels, and platform analytics to accurately attribute sales to campaigns. Multi-touch attribution gives the full picture.
Test different audiences, optimize landing pages, improve product-market fit, reduce cart abandonment, and focus budget on high-performing channels.
Common questions about calculating and improving marketing ROI
Aim for at least 200% ROI (3x return). Excellent campaigns achieve 400%+ ROI. Facebook and Google ads typically see 200-500% ROI when properly optimized. Email marketing often delivers 300-400% ROI.
Use net profit instead of revenue: [(Revenue - Product Costs - Marketing Costs) / Marketing Costs] × 100. This gives true ROI after accounting for COGS.
ROAS is revenue per ad dollar (Revenue / Ad Spend). ROI is profit percentage [(Revenue - Total Costs) / Ad Spend × 100]. ROAS is simpler but ROI shows actual profitability.
Minimum 2 weeks for statistical significance. Some products have longer sales cycles - track 30-60 days for big-ticket items. Factor in delayed conversions from retargeting.
Stop the campaign immediately unless you're deliberately running at a loss for customer acquisition. Analyze what went wrong: targeting, creative, offer, landing page, or product-market fit.
For campaign ROI, no. For overall marketing ROI, yes. Include team salaries, tools, agency fees. This gives a complete picture of marketing department performance.
Use multi-touch attribution models: first-click (awareness), last-click (conversion), or linear (equal credit). Google Analytics and Facebook offer attribution reports.
Yes! Our calculator supports 9 major currencies including USD, EUR, GBP, CAD, AUD, NGN, ZAR, KES, and GHS. Your preference is saved automatically.
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