Work out return on marketing investment instantly with clear inputs, formula shown and shareable results.
ROMI measures incremental gross profit against marketing spend, not revenue against spend. Two corrections matter: strip out baseline revenue that would have arrived anyway, and apply gross margin — a campaign returning revenue at a 20% margin needs five times the volume of one at 100%.
Incremental gross profit
Gross profit = (Campaign revenue - Baseline revenue) x Gross margin %
ROMI
ROMI % = (Incremental gross profit - Marketing spend) / Marketing spend x 100
Because customers who would have bought anyway are not a return on the campaign. Ignoring baseline is the single largest source of inflated marketing ROI.
Yes — gross profit exactly equals spend. Most organisations set a hurdle well above zero to cover overheads and risk.