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Marketing ROI Calculator

Marketing ROI measures the profit your marketing returns against what it cost you. Use this ROI calculator to see which channels earn their budget and which drain it – the number that decides where next quarter’s spend goes. .

Return on investment
How it works

How to calculate return on investment

ROI = (Revenue − Cost) ÷ Cost × 100

Revenue gained – all revenue you can attribute to the marketing activity over the period you are measuring: orders sipped, deals closed, jobs booked. Not pipeline, not forecast value. Use the same attribution window your reporting already uses – monthly, or a rolling 90 days.

Marketing cost – everything spent to produce that revenue: ad spend, agency or in- house staff time, creative production, and the software the campaign runs on. Leave any of it out and you get a channel metric, not a business one.

For example: You spend $8,000 on Google Ads in a month – $6,500 in ad spend plus $1,500 in management – and attribute $34,000 in revenue to it. ROI= ($34,000 – $8,000) / $8,000 x 100 = 325%. That is $26,000 of net returns on $8,000 spent, or $3.25 back for every dollar in, before product costs.

FAQ

Frequently asked questions

What’s a good marketing ROI? +
There is no sourced answer. The 5:1 figure repeated across the web is an industry rule of thumb whose trail ends at an uncited 2022 vendor page, and Nielsen- usually gestured at as the source – publishes no such headline multiple. Website Pandas sets ROI targets from your contribution margin instead.
Should I include labor and the tools in cost? +
Yes, if you want a true ROI. Count ad spend, agency or in-house staff time, creative production, and software. Website Pandas charges $500/month or 20% of ad spend, whichever is higher, and that fee belongs in cost. Whatever you include, include it consistently across every channel you compare.
What’s the difference between ROI and ROAS? +
ROAS divides revenue by ad spend alone. ROI subtracts every marketing cost first, then divides by that cost. ROAS tells you whether the ads pull their weight; ROI tells you whether the whole program does. Use the Website Pandas ROAS calculator for the first number and this ROI calculator for the second.
Is a 100% ROI good? +
Only if your margin supports it. 100% ROI means revenue reached twice your cost. At a 20% contribution margin, break-even sits at 5x revenue-to-spend, so 100% ROI is still a loss. At a 60% margin, break-even is 1.67x and 100% is genuinely profitable. Margin decides, not the percentage.
How long should I run a campaign before measuring ROI? +
Match the window to your sales cycle. Ecommerce can read a month. B2B with a 90-day cycle needs a full quarter before the number means anything, because spend lands before revenue does. Website Pandas reviews accounts monthly but judges ROI on a rolling 90 days, so one slow week never triggers a cut.
Why is my ROI negative? +
Negative ROI means the revenue you attributed came in below what you spent. Three usual causes: a tracking gap dropping assisted conversions, a cost per lead above what a lead is actually worth, or spend counted for a period whose revenue hasn’t landed yet. Website Pandas checks attribution before cutting budget.

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