How do you calculate ROI on marketing campaigns?

To calculate ROI (return on investment) on marketing campaigns, you need to subtract the costs of the campaign from the generated revenue. Then, divide this by the costs of the campaign and multiply by 100 to get the percentage ROI.

Suppose your company spends $2,000 on a social media marketing campaign, and as a result of the campaign, you generate $7,000 in new sales. You’d calculate the ROI on this campaign like this:

• $7,000 – $2,000 = $5,000
• $5,000 ÷ $2,000 = $2.50
• $2.50 × 100 = 250%

If you need help calculated the ROI on your marketing campaigns, ask Quillbot’s AI Chat.