Return on Marketing Investment / ROMI Calculator

Going nuts about whether your marketing budget is actually bringing in results? 

Stop guessing and start measuring the actual results with our Return on Marketing Investment/ROMI Calculator.

What is Return on Marketing Investment (ROMI)?

ROMI or Return on Market Investment tells you ho much revenue you are generating for every penny spent on marketing. So, the higher is your ROMI, the better your maROMI or Return on Market Investment tells you how much revenue you are generating for every penny spent on marketing. So, the higher is your ROMI, the better your marketing efforts are performing. You can use a Return on Investment calculator if you want to find out:

• If your ads are generating real profits?
• If you should scale up or cut back on spending?
• Which marketing channels are actually giving you the best results?

With just a few inputs from your side, our ROMI calculator offers you instant insights, so you can optimize your ad strategy and skyrocket your ROI. For more information about ROMI, feel free to check out our guide on Why is ROMI the Key to Smart Marketing?

How to Use the ROMI Calculator?

To accurately measure ROMI, you need to consider the following components: 

• Campaign Revenue: Total revenue generated from the marketing campaign.
• Campaign CoGS: Cost of Goods Sold (CoGS) specifically for the campaign-related sales.
• Marketing Cost: Total cost incurred for running the marketing campaign, including ads, promotions, and other expenses.
• Baseline Revenue: Revenue that would have been generated without the marketing campaign.
• Baseline CoGS: Cost of Goods Sold (CoGS) for the baseline revenue, showing the normal operational costs.

To determine ROMI, the formula used here is:

ROMI= {(Campaign Revenue-Campaign CoGS) – (Baseline Revenue- Baseline CoGS)}/Marketing Cost

Sample Calculation:

If a company generates:

• $50,000 in revenue from a campaign
• With $20,000 in CoGS
• A $30,000 baseline revenue
• $12,000 baseline CoGS, and
• $8,000 in marketing costs

The ROMI would sum up to: 

ROMI= {(50,000-20,00) – (30,000-12,000)}/8,000

Thus, ROMI= {(30,000) – (18,000)}/8,000= {12,000}/8,000= 1.5

Since ROMI is 1.5>1, so your campaign is profitable, and it delivers a positive return on marketing investment.

Understanding Your Results:

After you have calculated the ROMI, here’s how you can interpret the results for optimizing your marketing strategies:

• Positive ROMI: If you have a ROMI > 1, it means that your marketing efforts are profitable. The higher the ROMI, the more efficient your marketing campaign is.

NOTE: A ROMI>1 might not always be an indication of profitable marketing campaigns. You also need to look into other aspects like break-even ROAS to ensure that your ads are making you money. 

• Negative ROMI: If ROMI< 1 or negative, this indicates that your campaign is underperforming. Which means that the marketing costs exceed the profit generated. If you have a negative ROMI, this means that you need to adjust your strategies, optimize costs, and target improvements in your campaign. 

If you want to read more about what qualifies as a good ROI and how to improve your ROMI, check out What is Good ROI?

Why Use Our ROMI Calculator?

You can use our ROMI Calculator because it offers:

• Instant Results without any spreadsheets or complicated pen-and-paper calculations.
• Data-driven decisions mean you can spend smarter and not harder. 
• Better Budgeting Planning because you can know where to invest for maximum impact. 

Ready to Make Smarter Marketing Decisions?

Enter your details in our  Return on Marketing Investment Calculator and discover how well your marketing campaigns are performing.