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

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:

- 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** = ?**