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Formula

Revenue×Gross Margin−Marketing SpendMarketing Spend

Marketing · Return

Marketing ROI

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Use marketing ROI to measure the profit a campaign returns on spend — unlike ROAS, it nets out the gross margin and the spend itself to show the true return.

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Campaign profit return

Revenue×Gross Margin−Marketing SpendMarketing Spend

$50,000 of revenue at a 60% gross margin is $30,000 of profit; against $10,000 of spend that is a 200% ROI.

Step 1 of 4

Variables and units

  • Revenue from Marketing

    Revenue attributed to the marketing.

    currency

  • Gross Margin

    Enter 60 for 60%.

    percent

  • Marketing Spend

    Total spent on the marketing.

    currency

Common mistakes

  • Using revenue instead of profit — that is ROAS, not ROI.
  • Forgetting to apply the gross margin to the revenue.

Step-by-step example

Campaign profit return

  1. 1. Start with the example inputs

    • Revenue from Marketing$50,000
    • Gross Margin60%
    • Marketing Spend$10,000

  2. 2. Apply the formula

    Revenue×Gross Margin−Marketing SpendMarketing Spend

  3. 3. Run the numbers

    200%

    $50,000 of revenue at a 60% gross margin is $30,000 of profit; against $10,000 of spend that is a 200% ROI.

What this result means

A marketing ROI of 200% is profit returned per dollar of marketing spend, after margins — unlike ROAS, which counts revenue. Positive means the spend pays for itself in profit; compare campaigns on this number to decide where the next dollar should go.