Compare campaign revenue efficiency with profitability. Enter spend and attributed revenue, then optionally include gross margin for contribution profit and profit-based ROMI.
Pick your assumptions
- Profit-based ROMI
- 147.5%
- Revenue : spend
- 4.50:1
- Attributed revenue
- $45,000
- Profit after direct costs
- $24,750
- Marketing spend
- $10,000
- Profit after marketing spend
- $14,750
How to calculate marketing ROI
Revenue : spend equals attributed revenue ÷ spend. Revenue ROI equals (revenue − spend) ÷ spend, but revenue less spend is not profit.
How gross margin changes marketing ROI
With gross margin, contribution profit equals revenue × margin and profit-based ROMI equals (contribution profit − spend) ÷ spend. This separates revenue efficiency from profit after direct costs and marketing spend. The chart uses category bars so you can compare each amount directly.
Frequently asked questions
How is marketing ROI calculated?
Without gross margin, Revenue ROI equals (attributed revenue − spend) ÷ spend and measures gross revenue efficiency. Revenue less spend is not labeled as profit. With gross margin included, the headline switches to profit-based ROMI equals (contribution profit − spend) ÷ spend.
What is ROMI?
Profit-based ROMI applies gross margin. Contribution profit equals attributed revenue × gross margin, then ROMI equals (contribution profit − spend) ÷ spend. A supplied 0% margin is valid and produces -100% ROMI when spend is positive.
Why does profitability require gross margin?
Gross margin estimates profit after direct costs (contribution profit). If the gross-margin option is turned off, profit after direct costs, profit after marketing spend, and ROMI show N/A while revenue efficiency metrics still calculate.
What happens when campaign spend is zero?
Attributed revenue still displays. If gross margin is included, contribution profit also displays. Revenue : spend, Revenue ROI, and ROMI show N/A because there is no valid denominator.