Marketing
ROI Calculator
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Frequently asked questions
What is the ROI formula?
ROI (Return on Investment) = ((Total Return - Initial Investment) / Initial Investment) x 100. A positive result means a profit; a negative result means a loss.
What is a good ROI for marketing campaigns?
A commonly cited benchmark is a 5:1 ratio (500% ROI) for marketing spend, meaning five dollars returned for every dollar invested. The acceptable threshold varies by industry, channel, and business model.
What is the difference between ROI and ROAS?
ROI measures overall profitability relative to total investment cost, factoring in all costs. ROAS (Return on Ad Spend) measures revenue generated per dollar of ad spend only, without accounting for margins or other costs.