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 ($) 
  • MC is the marketing cost ($) 

To calculate the return on marketing, divide the difference between the increase in sales and the marketing cost by the marketing cost, then multiply by 100.

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 = ?