How to Calculate Your Marketing ROI

30 June 2026·1 min read

Quick answer: Marketing ROI = (revenue from marketing − cost of marketing) ÷ cost of marketing. In plain terms: what you got back versus what you spent. Track the revenue each channel or campaign brings and what it cost, and you can see what’s actually working — and where to put more (or less). 📈

ROI tells you whether your marketing is making money or burning it. Here’s how to work it out. 💖

The simple formula

ROI = (Revenue − Cost) ÷ Cost

If you spend $100 and it brings $400, that’s ($400 − $100) ÷ $100 = 3, or 300% ROI. 🌴

What you need

The cost of the channel or campaign
The revenue it generated (track it!)
A way to attribute sales to source

💡 You can only measure ROI if you track the source. Use unique links, codes or “how did you hear about us?” so you can tie revenue back to each channel. Without attribution, ROI is just a guess.

Frequently asked questions

How do I calculate marketing ROI?

Use the formula: ROI = (revenue from marketing − cost of marketing) ÷ cost of marketing. Track what each channel or campaign costs and the revenue it brings, then compare. This shows what’s working and where to invest more or less.

What is a good marketing ROI?

It varies by channel and business, but you generally want revenue comfortably exceeding cost. Rather than chasing a benchmark, compare your channels against each other and aim to improve your own ROI over time.

How do I track which marketing brings revenue?

Use unique links (UTM codes), discount codes per channel, dedicated landing pages, and ask customers how they found you. Attribution is what makes ROI measurable — without it, you’re guessing.

Keep reading 🤍

Written by

Kate, founder of Chronically Online

I help Gold Coast and Brisbane businesses grow with branding, websites and marketing that actually works.

Work with me ✦