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.
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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:
- First, determine the increase in sales ($).
- The increase in sales ($) is given as: 3,000.
- Next, determine the marketing cost ($).
- The marketing cost ($) is provided as: 1,450.
- 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 = ?
