How to Calculate Marketing ROI

Marketing is an expense that almost every business has, regardless of the size or the industry. Choose your marketing methods wisely, based on both costs and return on investment (ROI). A high ROI is a sign that your marketing is working. It is easy to calculate your marketing ROI.

Things You'll Need

• Profit statement
• Marketing project receipts

Instructions

Calculating Marketing ROI

1. Add up all of your profit statements for one project. Your profit is your gross revenue minus any expenses.

2. Add up all of your marketing receipts for your project to arrive at your total marketing expenses.

3. Subtract your marketing expenses from your profit.

4. Divide the total you got in Step 3 by your marketing expense. The resulting number is your marketing ROI percentage.

Tips & Warnings

• A higher percentage is a sign that your marketing plan is working. Concentrate your efforts on high ROI techniques.

Resources

• Read this Article in Spanish