Enter the increase in sales ($) and the marketing cost ($) into the Return on Marketing Calculator. The calculator will evaluate and display the Return on Marketing.

## Return on Marketing Formula

The following formula is used to calculate the Return on Marketing.

ROM = (IS – MC) / MC * 100

• Where ROM is the Return on Marketing (%)
• IS is the increase in sales ($) • MC is the marketing cost ($)

## How to Calculate Return on Marketing?

The following example problems outline how to calculate Return on Marketing.

Example Problem #1:

1. First, determine the increase in sales ($). • The increase in sales ($) is given as: 3,000.
2. Next, determine the marketing cost ($). • The marketing cost ($) is provided as: 1,450.
3. Finally, calculate the Return on Marketing using the equation above:

ROM = (IS – MC) / MC * 100

The values given above are inserted into the equation below and the solution is calculated:

ROM = (3,000 – 1,450) / 1450 * 100 = 106.89 (%)

Example Problem #2:

For this problem, the variables needed are provided below:

increase in sales ($) = 2,000 marketing cost ($) = 500

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

ROM = (IS – MC) / MC * 100 = ?