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Marketing ROI calculator
Enter attributed revenue, gross margin and total marketing cost to get marketing ROI on gross profit, next to the ROI you would get if you used revenue.
Marketing ROI
Enter your numbers to see the result.
Free tool by Telehealth Media · telehealthmedia.com
How it works
Marketing ROI compares what marketing brought in with what it cost. The honest version uses gross profit, because revenue includes money that goes straight back out on medication, consults and shipping.
- Gross profit = attributed revenue x gross margin
- Marketing ROI = (gross profit - marketing cost) / marketing cost x 100
- ROI on revenue (for comparison) = (revenue - marketing cost) / marketing cost x 100
The calculator shows both so you can see how much the revenue version overstates return. Include every marketing cost: ad spend, creative, agency fees and tools.
Worked example
Marketing brought in 120,000 USD of revenue at a 60% gross margin and cost 50,000 USD in total.
| Step | Calculation | Result |
|---|---|---|
| Gross profit | 120,000 USD x 60% | 72,000 USD |
| Marketing ROI | (72,000 - 50,000) / 50,000 x 100 | 44.0% |
| ROI on revenue | (120,000 - 50,000) / 50,000 x 100 | 140.0% |
Same campaign, very different answers. These numbers illustrate the formula; enter your own.
Telehealth notes
- For subscription treatments, first-month ROI is often negative by design. Look at ROI over a cohort lifetime as well.
- Attribution decides what counts as "attributed revenue". Use the same window and model when you compare periods.
- If ROI on gross profit is negative while ROI on revenue looks fine, the business is buying revenue at a loss.
Questions
How do you calculate marketing ROI?
Take the gross profit marketing brought in, subtract what marketing cost, divide by what marketing cost and multiply by 100.
Why not use revenue for ROI?
Revenue includes the cost of delivering each order. Using it makes marketing look more profitable than it is.
What costs count as marketing cost?
Ad spend plus creative, agency fees, tools and any people costs you want to include. Be consistent between periods.
Are my numbers stored?
No. The calculation runs in your browser and nothing is sent to us.