ROI Calculator
Calculate return on investment including all costs for true profitability.
How to Use This ROI Calculator
Formula: ROI = [(Revenue - Total Costs) ÷ Total Costs] × 100
Enter your total revenue, cost of goods sold, marketing spend, and any other costs. ROI shows your net profit as a percentage of your total investment. An ROI of 50% means you earn $1.50 for every $1 spent.
Why ROI Matters
ROI is the ultimate measure of profitability. Unlike ROAS (which only considers ad spend), ROI accounts for all costs—product costs, shipping, overhead, and marketing. This gives you the true picture of whether your campaigns are actually making money.
A positive ROI means you're profitable. A negative ROI means you're losing money. The magnitude matters too—a 10% ROI might be acceptable for low-risk ventures, while high-growth startups might target 100%+ to justify the investment.
ROI helps you compare different marketing channels and campaigns on equal footing. Channel A might have lower ROAS but higher ROI if it drives larger average order values or lower-cost products.
Tips for Improving Your ROI
- Increase profit margins: Negotiate better supplier costs or increase prices strategically.
- Reduce waste: Eliminate underperforming campaigns, keywords, or audiences.
- Improve customer retention: Repeat customers have much higher ROI than new acquisition.
- Optimize conversion rates: Small improvements to checkout flow can dramatically boost ROI.
- Focus on high-margin products: Promote items with better unit economics in your marketing.
Want to learn more?
Read the full ROI glossary entry →