Marketing ROI (MROI)
Net profit from marketing relative to marketing costs
FORMULA
Marketing ROI = ((Revenue - Marketing Cost) / Marketing Cost) × 100
Alternate Calculations
Net Profit
((Gross Profit - Marketing Cost) / Marketing Cost) × 100What is Marketing ROI?
Marketing ROI measures the profit generated from marketing efforts relative to the cost of those efforts. It shows the return on every dollar spent on marketing. A positive ROI indicates profitable marketing, while negative ROI suggests losses. Critical for justifying marketing budgets.
Chart
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Sample Data
| quarter | spend | revenue | cogs | roi |
|---|---|---|---|---|
| Q1 | 100,000 | 500,000 | 200,000 | 200 |
| Q2 | 110,000 | 575,000 | 230,000 | 216 |
| Q3 | 105,000 | 560,000 | 224,000 | 219 |
| Q4 | 120,000 | 650,000 | 260,000 | 225 |
Required Data Columns
Marketing SpendAttributed RevenueCost of Goods Sold