ROI Calculator for Marketing
Calculate marketing ROI on campaigns, ads, and content spend. Annualised return, payback period view, and color-coded result tier for fast decisions.
ROI equals net return minus investment, divided by the investment, times one hundred. Earning thirteen thousand five hundred back on a ten thousand investment is a thirty-five percent ROI.
Marketing ROI = (revenue attributable to marketing − marketing spend) ÷ marketing spend. The industry shorthand ROAS = gross revenue ÷ ad spend, before COGS. Healthy benchmarks: ROAS 3-4x for ecommerce paid social, CAC payback under 12 months for SaaS, LTV:CAC ratio of 3:1 or better. IAB attribution standards are the closest framework.
"Marketing ROI" gets used loosely across teams that mean very different things. A CMO usually means brand-attributable revenue lift over a long window. A performance marketer means ROAS this week. A CFO means contribution-margin payback against fully-loaded customer acquisition cost. This calculator outputs the four metrics they actually need, side-by-side, so the conversation can converge:
ROAS (Return on Ad Spend) = revenue / ad spend - Industry shorthand for performance marketing - Pre-COGS, pre-overhead — a vanity metric without context - Useful for daily channel optimisation
MER (Marketing Efficiency Ratio) = total revenue / total marketing spend - Aggregate, post-attribution honesty check - Better than ROAS for cross-channel comparison
CAC (Customer Acquisition Cost) = marketing spend / new customers acquired - The unit number that ties to LTV - Should include all marketing fully-loaded (salaries, agencies, tools, ad spend)
LTV:CAC = customer lifetime value / CAC - The single most important compound number in subscription / repeat-purchase businesses - Healthy: 3:1 or better - Below 1:1 you are subsidising customers; below 3:1 you may not be funding growth profitably
Industry benchmarks (2026): - DTC ecommerce paid-social ROAS: 2-4x; best-in-class 5x+ - B2B SaaS CAC payback: 12-18 months target; under 12 is elite - Content / SEO LTV:CAC: typically 5:1+ once mature (12-18 month ramp) - Affiliate / referral CAC: lowest at 10-30% of paid CAC
The calculator handles common gotchas: - Attribution windows (last-click vs first-click vs linear) - iOS 14.5+ paid-social under-reporting (Meta typically under-reports actual revenue by 15-40% post-ATT) - Returns and refunds (gross revenue overstates contribution) - Free trial conversion (gross signups overstate paying-customer CAC)
For framework-level guidance, the IAB's MRC-accredited attribution standards and the AMA's marketing measurement framework are the closest things to authoritative references in the US.
Inputs
Total amount spent or invested upfront
Total return or revenue generated from the investment
Enables annualised ROI for comparing different-length investments
ROI
Healthy35.0%
Strong return — this investment paid off well.
Net profit: $3,500.00
Annualised ROI
22.1%
Equivalent yearly rate — use to compare investments of different durations
Net Profit
$3,500.00
Absolute profit or loss in cash terms
See the formula
See parent calculator at /roi-calculator for the full formula reference.
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Methodology & sources
Rates last verified: May 2026Simple ROI does not account for the time value of money. For investments held over multiple years, use the annualised ROI for fair comparison.
Rates are reviewed annually or when a region changes its headline rate. If you spot one that's out of date, email [email protected].
For information only. This calculator does not constitute financial, accounting, or tax advice. Consult a qualified professional before making business decisions.