What is the difference between ROI and ROAS?

ROAS (return on ad spend) divides revenue by ad spend and ignores costs and margins, so it is a gross top-line ratio. ROI subtracts all campaign costs and reflects profit, so it is the more conservative, bottom-line measure.

How to Calculate Campaign ROI

Q: What is the formula for campaign ROI?

Campaign ROI = (Revenue attributable to the campaign − Campaign cost) ÷ Campaign cost × 100, expressed as a percentage. A result of 300% means you earned three dollars of profit for every dollar spent.

Q: What is a good marketing ROI?

A common rule of thumb is 5:1 revenue-to-cost (a 400% ROI) as a solid benchmark, with 10:1 considered exceptional and below 2:1 often unprofitable once overhead is included. Good ROI varies widely by channel, margin, and sales cycle, so compare against your own history.

By Amit Gupta · Senior Director, Marketing Operations · Published 14 June 2026

To calculate campaign ROI, subtract the campaign's cost from the revenue it generated, divide by the cost, and multiply by 100: ROI = (Revenue − Cost) ÷ Cost × 100. A campaign that earns $40,000 on $10,000 of spend has an ROI of 300%, or three dollars of profit per dollar spent.

On this page

The formula
A worked example
ROI vs ROMI vs ROAS
What counts as good
Pitfalls to avoid
FAQs

The formula

Campaign ROI is a profit ratio expressed as a percentage:

ROI (%) = (Revenue − Cost) ÷ Cost × 100

Revenue is the value attributable to the campaign (closed-won deals, or pipeline × win rate for in-flight programs). Cost should include media spend plus the directly attributable costs (agency fees, tooling, and content production), not just the ad budget.

A worked example

A demand-gen campaign spends $10,000 and generates 250 leads. With an 8% lead-to-deal win rate and an $2,000 average deal size:

Deals = 250 × 8% = 20
Revenue = 20 × $2,000 = $40,000
ROI = ($40,000 − $10,000) ÷ $10,000 × 100 = 300%

That's a 4:1 revenue-to-cost ratio, healthy for most B2B programs. The same inputs also give you a cost per lead of $40 and a cost per acquisition of $500.

Skip the spreadsheetThe Campaign ROI Calculator turns spend, leads, deal size and win rate into ROI %, CAC, CPL and a funnel view.

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ROI vs ROMI vs ROAS

Metric	Formula	What it captures
ROI	(Revenue − Cost) ÷ Cost × 100	Profit per dollar of total campaign cost
ROMI	(Revenue from marketing − Marketing cost) ÷ Marketing cost	Same idea, scoped to marketing-driven revenue only
ROAS	Revenue ÷ Ad spend	Gross return on ad spend, ignoring margin and other costs

Use ROAS for quick in-platform ad optimization; use ROI/ROMI when you need the profit story for the board.

What counts as good

A frequently cited benchmark is 5:1 revenue-to-cost (≈400% ROI) as a strong result, with 10:1 exceptional and under 2:1 often unprofitable once fully loaded costs are counted. These are rules of thumb. The honest benchmark is your own trend over time and your contribution margin. Always present a range and compare against prior campaigns rather than a single industry number.

Pitfalls to avoid

Counting revenue, not profit. If margins are thin, a high ROI on revenue can still lose money. Use gross-profit revenue where you can.
Ignoring the sales cycle. For long B2B cycles, measure on pipeline × win rate, and label it as a projection until deals close.
Under-counting cost. Include tooling, agency, and content, not just media.
Attribution gaps. ROI is only as good as the attribution behind "Revenue." Be explicit about your model.

Frequently asked questions

What is the formula for campaign ROI?

ROI = (Revenue attributable to the campaign − Campaign cost) ÷ Campaign cost × 100. A result of 300% means three dollars of profit for every dollar spent.

What is a good marketing ROI?

A common rule of thumb is 5:1 revenue-to-cost (a 400% ROI), with 10:1 exceptional and below 2:1 often unprofitable once overhead is included. It varies widely by channel and margin, so compare against your own history.

What's the difference between ROI and ROAS?

ROAS divides revenue by ad spend and ignores costs and margin (a gross ratio). ROI subtracts all campaign costs and reflects profit, the more conservative, bottom-line measure.

Last updated: 14 June 2026