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Return On Marketing Investment Calculator

Work out return on marketing investment instantly with clear inputs, formula shown and shareable results.

About Return On Marketing Investment Calculator

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%.

Formulas

Incremental gross profit

Gross profit = (Campaign revenue - Baseline revenue) x Gross margin %

ROMI

ROMI % = (Incremental gross profit - Marketing spend) / Marketing spend x 100

Worked example

With the default values below, Return On Marketing Investment Calculator returns Return on marketing investment of 85.68%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Incremental revenue from the campaign
480,000
Gross margin on that revenue
42
Marketing spend
95,000
Revenue that would have occurred anyway
60,000

Results

Return on marketing investment
85.68%
Incremental gross profit
$176,400.00
Net contribution after spend
$81,400.00
Revenue per unit of spend
4.42

Step by step

  1. 1Values used
  2. 2Incremental gross profit
  3. 3ROMI
  4. 4Return on marketing investment= 85.68
  5. 5Incremental gross profit= 176,400.00
  6. 6Net contribution after spend= 81,400.00
  7. 7Revenue per unit of spend= 4.42

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why subtract baseline revenue?

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.

Is a ROMI of 0% break-even?

Yes — gross profit exactly equals spend. Most organisations set a hurdle well above zero to cover overheads and risk.

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