ROI is like a scale, balancing your marketing efforts on one side and financial returns on the other. It’s a critical measure of effectiveness in marketing campaigns.
The concept of ROI is simple. You pour a certain amount spent into your marketing efforts, and in return, you track the sales generated. The greater the sales in relation to the investment, the higher the ROI.
Calculating ROI can be as straightforward as dividing the net profit (sales minus expenses) by the total amount spent on marketing. Multiply this by 100, and you have your ROI percentage.
ROI (%) = (Net Profit / Marketing Investment) x 100
A high ROI is a sign of a healthy bottom line and an effective marketing strategy. It tells you that your marketing efforts are not just generating sales, but doing so efficiently and profitably.
The values you enter into this calculator are not saved or stored in any way.