How do you calculate marketing ROI?

Marketing ROI = (Revenue Generated from Marketing - Marketing Cost) ÷ Marketing Cost × 100. For example, if you spend $5,000/month on marketing and generate $25,000 in revenue from those leads, your ROI is 400%. A good marketing ROI benchmark is 5:1 (500%) - meaning $5 in revenue for every $1 spent.

What is a good marketing ROI?

A good marketing ROI is typically 5:1 (500%), meaning you earn $5 for every $1 spent. Exceptional ROI is 10:1 or higher. Below 2:1, you're likely losing money after accounting for overhead. However, ROI varies significantly by industry - law firms with $5,000+ case values can sustain higher CPLs than e-commerce with $120 average orders.

Calculate Your Marketing ROI in 30 Seconds

Marketing ROI = (Revenue from Marketing - Marketing Cost) / Marketing Cost x 100. A good benchmark is 5:1, so $5 in revenue for every $1 spent. Enter your numbers below to see where you stand.

The average marketing ROI across industries is 5:1 (500%). Below 2:1 you're likely losing money after overhead; above 10:1 is exceptional. This calculator shows you exactly where your marketing falls and how to improve it.

Your Marketing Numbers

Industry (optional - for benchmark comparison)

Monthly marketing spend ($)

Total marketing budget - ads, agency fees, tools, content. Everything.

Leads per month

Close rate (%)

% of leads that become paying customers

Average customer value ($)

Revenue from one customer (one-time or lifetime - be consistent).

Your Marketing ROI

Enter your marketing spend, leads, close rate, and customer value to see your ROI instantly.

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How Marketing ROI Is Calculated

ROI = ( Revenue - Cost ) ÷ Cost × 100

Example: You spend $5,000/month on marketing, get 40 leads, close 25% (10 customers), and each customer is worth $2,500. That is $25,000 in monthly revenue from marketing. ROI = ($25,000 - $5,000) / $5,000 × 100 = 400%, or a 5:1 return.

The formula is easy. The hard part is attribution: knowing which marketing dollar produced which customer. Without full-funnel tracking, most businesses are guessing at their ROI.

They know total spend. They know total revenue. They cannot connect the two, so the ROI is a guess with a decimal point.

< 2:1

Below Break-Even

Losing money once overhead is in. Fix targeting or conversion first.

2:1 - 4:1

Moderate

Covering costs, thin margins. Plenty of room to improve.

5:1 - 9:1

Good

Healthy returns. The benchmark most businesses aim for.

10:1+

Exceptional

Top-tier campaigns. Scale, and scale hard.

Source: Industry benchmarks compiled from Google Ads data, HubSpot Marketing Statistics, and Anar Agency client performance data · March 2026