Marketing ROI Calculator
Estimate the return generated by marketing after accounting for marketing cost and, optionally, product gross margin.
How this calculator works
Estimated Gross Profit = Attributed Revenue × Gross Margin %.
Marketing ROI = (Estimated Gross Profit - Marketing Cost) / Marketing Cost × 100.
Set gross margin to 100% only when you intentionally want a revenue-based return calculation.
Example
If attributed revenue is ₹5 lakh, gross margin is 40% and marketing cost is ₹1 lakh, estimated gross profit is ₹2 lakh and marketing ROI is 100%.
Frequently asked questions
Why include gross margin?
Revenue is not profit. Gross margin helps account for the direct cost of the product or service before measuring return against marketing spend.
Should salaries and agency fees be included in marketing cost?
Include the costs you want your ROI metric to evaluate, and use the same scope each period.
Is marketing ROI the same as ROAS?
No. ROAS is usually attributed revenue divided by ad spend. Marketing ROI compares estimated profit with a broader marketing cost.