Online Calculators for Business & Investment
When marketing costs are becoming an increasingly large part of business budgets, it becomes very valuable to know the returns this spending generates.
To solve this problem, we have this Marketing Return on Investment (ROI) calculator. Simply input the required values and the Marketing ROI will be calculated. Ideally, you want a percentage return that is positive (greater than zero), indicating you are making more money than what you are spending on marketing. If you have a Marketing ROI of 100%, for example, this simply means you have doubled your money on that campaign.
You can use the final result to test whether to continue to use that marketing method or perhaps you can benchmark specific campaigns against each other and see what type of campaign earn the highest Marketing ROI and thus gives you the best bang for your buck.
Marketing ROI Calculator
Specifically, the calculator asks for:
Marketing Spend, which is simply the dollar figure spent on your marketing campaign.
Incremental Revenue on Marketing, which is the revenue that is generated by the same marketing spend. Note, you don’t include the revenue generated normally, i.e. without the marketing campaign. Only include the incremental revenue, the revenue dependant on the marketing spend.
Contribution Margin, which is unit sales price of your product minus the variable costs associated with providing that product, given as a percentage. For example, if your product sells for $100 but it cost $30 to get that item in stock, your contribution margin would be 70%, or ($100 - $30) / $100.