What is marketing ROI?

Marketing ROI measures how much net profit you earned relative to your marketing spend. Formula: ((Revenue - COGS - Ad Spend) / Ad Spend) × 100. A 100% ROI means you doubled your spend as net profit.

What is ROAS and how does it differ from ROI?

ROAS (Return on Ad Spend) is simply Revenue ÷ Ad Spend — it ignores cost of goods. ROI goes further by subtracting COGS, giving a true profitability picture. A 3× ROAS can still be unprofitable if COGS is high.

What ROAS do I need to be profitable?

Break-even ROAS = 1 / (1 - COGS %). For example, if COGS is 60% of revenue, you need ROAS > 2.5× just to cover product costs before considering ad spend.

Should I include agency or creative fees in ad spend?

Yes. Total marketing spend should include all costs directly tied to the campaign: media buy, agency fees, creative production, and any tool subscriptions used exclusively for that campaign.

What counts as COGS for an ecommerce campaign?

COGS includes product cost, packaging, and shipping to the customer. It excludes overhead like rent or salaries unless those are directly tied to fulfillment.

Marketing ROI Calculator

Name: Marketing ROI Calculator
Availability: InStock
Author: Nham Vu

Enter your ad spend, revenue, and cost of goods to get ROI %, net profit, and ROAS in one click.

Campaign Inputs

Currency

Total Marketing Spend

Ad budget, agency fees, creative costs

Campaign Revenue

Revenue directly attributed to this campaign

Cost of Goods Sold (COGS)

Enter dollar amount or percentage of revenue — both fields sync

Enter your campaign numbers on the left to see results.

Summary

Enter your ad spend, revenue, and cost of goods to get ROI %, net profit, and ROAS in one click.

How it works

Enter your total marketing spend (ad budget, agency fees, creative costs).
Enter the revenue directly attributed to that campaign.
Enter cost of goods sold (COGS) — the direct cost to produce or source the sold items.
The calculator computes gross profit (revenue minus COGS), net profit (gross profit minus spend), ROI % ((net profit / spend) × 100), and ROAS (revenue / spend).
Adjust any input to instantly see how changes in spend or revenue affect profitability.

Use cases

Compare the ROI of paid search, social ads, and email campaigns side by side.
Determine the break-even ROAS before launching a new ad campaign.
Justify or cut marketing budget based on historical campaign ROI.
Present campaign performance to stakeholders with clear profit figures.
Evaluate influencer or affiliate partnerships by plugging in attributable revenue.
Set ROAS targets that account for your product margin, not just revenue.

Frequently Asked Questions

Last updated: 2026-07-01 · Reviewed by Nham Vu