Return on Marketing Investment (ROMI)

Return on Marketing Investment, commonly abbreviated as ROMI, is a metric that businesses use to determine the efficacy of their marketing campaigns. It serves as an insight into how much profit is generated from each dollar invested in marketing activities

How to Measure Return on Marketing Investment (ROMI) 

Measuring ROMI can be broken down into a three-step process: 

  1. Firstly, you need to calculate your total revenue generated from marketing activities. This might include sales from new customers, repeat purchases, or other revenue streams directly attributable to marketing efforts.
  2. Secondly, determine your total marketing spend. This includes every dollar spent on marketing activities, such as advertising, content creation, social media management, and so on.
  3. Lastly, use the following formula to calculate your ROMI: (Revenue from Marketing – Marketing Investment) / Marketing Investment. The result will give you your ROMI as a percentage. The higher the percentage, the better your return on marketing investment.

For example, the company invested $10,000 in marketing activities and generated $20,000 in revenue. This equates to a ROMI of 100%, indicating that for every dollar they invested in marketing, they gained a dollar in profit.

ROMI Calculator

The values you enter into this calculator are not saved or stored in any way.

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