Marketing ROI compares what a campaign returned against what it cost, after accounting for the cost of the product or service you delivered. It answers a simple question every budget owner eventually has to answer: for every dollar spent on marketing, how many dollars came back? A positive ROI means the campaign generated more gross profit than it consumed in spend. A negative ROI means the campaign is losing money even before overhead is considered.
ROAS (return on ad spend) is a related but different number — it compares revenue to spend without subtracting the cost of goods or fulfillment. A campaign can have a healthy ROAS and still be unprofitable if margins are thin, which is why this calculator shows both figures side by side rather than just one.
It depends heavily on industry and margin, but many marketers treat 100% ROI (you doubled your money) as a solid baseline and 200%+ as excellent. Low-margin retail and e-commerce often run lower ROI numbers than high-margin SaaS or services.
ROAS only looks at revenue versus spend, ignoring the cost of delivering the product. A campaign can post a strong ROAS while still being unprofitable once fulfillment or COGS is factored in — that's exactly the gap this calculator is built to surface.
Both are useful. Per-campaign ROI tells you where to shift budget; blended ROI across all spend tells you whether the marketing function overall is profitable. Use this calculator for either by simply changing what spend and revenue figures you enter.
No — this calculator uses the revenue and cost you enter for a single period. If a customer generates repeat revenue over time, your true ROI is likely higher than what a first-purchase-only calculation shows. For LTV-aware breakeven math, see our CPL & Allowable CPA Calculator.