Marketing ROI Calculator
This interactive tool measures campaign effectiveness across channels with key metrics like Return on Ad Spend (ROAS), Customer Acquisition Cost (CAC), and customer lifetime value – transforming marketing spend into strategic investment decisions.
This calculator processes all data locally in your browser – no information is stored, transmitted, or shared. All calculations remain completely private. This proprietary tool is © 2025 Karen Elaine Lewis LLC. All rights reserved.
Marketing ROI Calculator
Marketing campaign details
Your marketing ROI results
ROI interpretation
Calculate your marketing ROI to see the interpretation of your results.
Methodology and assumptions
Calculation methodology
This calculator uses multiple marketing metrics to provide a comprehensive view of campaign performance:
Key formulas
Marketing ROI: (Total Revenue – Total Marketing Costs) / Total Marketing Costs × 100%
Return on Ad Spend (ROAS): Total Revenue / Total Marketing Costs
Customer Acquisition Cost (CAC): Total Marketing Costs / Number of New Customers
LTV to CAC Ratio: Customer Lifetime Value / Customer Acquisition Cost
Revenue calculations
Immediate revenue: Number of new customers × Average order value
Long-term revenue: Number of new customers × Customer lifetime value
Total revenue: Long-term revenue + Additional revenue from existing customers
Cost considerations
Total marketing costs include advertising spend, creative production, staff time, and marketing tools. This comprehensive approach ensures accurate ROI calculations.
Important assumptions
Customer lifetime value represents the total expected revenue from a customer over their entire relationship with your business. Attribution assumes all new customers and additional revenue are directly linked to the marketing campaign.
Definitions and relevant information
The revenue generated by marketing activities minus the cost of those activities, divided by the cost, expressed as a percentage. It measures the efficiency of marketing investments.
Revenue generated for every dollar spent on advertising. A ROAS of 4:1 means you earn $4 for every $1 spent on ads.
The total cost of acquiring a new customer, including all marketing and sales expenses divided by the number of customers acquired.
The predicted total revenue a customer will generate during their entire relationship with your business.
Compares the lifetime value of a customer to the cost of acquiring them. A healthy ratio is typically 3:1 or higher.
The total monetary value generated from marketing conversions, including both immediate purchases and long-term customer value.
Marketing ROI benchmarks
Excellent ROI: 400% or higher (5:1 ROAS)
Good ROI: 200-400% (3:1 to 5:1 ROAS)
Average ROI: 100-200% (2:1 to 3:1 ROAS)
Break-even: 0% ROI (1:1 ROAS)
Tips for improving marketing ROI
Target optimization: Focus on high-converting audience segments
Channel analysis: Identify and invest more in top-performing marketing channels
Creative testing: Continuously test and optimize ad creative and messaging
Attribution tracking: Implement proper tracking to measure true campaign impact
Customer retention: Increase lifetime value through retention strategies