ROMI Calculator

Calculate Return on Marketing Investment (ROMI) using attributed revenue and gross margin to estimate incremental profit. Enter spend, revenue, and margin to compute ROMI%, incremental profit, and revenue‑to‑spend ratio.

What is ROMI?

Return on Marketing Investment (ROMI) measures how effectively marketing spend generates profit. It uses margin to convert revenue into incremental profit.

How to use this calculator

Enter marketing spend, attributed revenue, and gross margin. The calculator returns ROMI%, incremental profit, and the revenue‑to‑spend ratio.

Why it matters

ROMI guides budget allocation by identifying which channels or campaigns deliver profitable growth.

Example

$20k spend, $60k revenue, 60% margin → incremental profit $36k, ROMI 80%, revenue‑to‑spend ratio 3.0×.

Assumptions & limitations

Attribution and margin accuracy are critical. Consider lag effects and non‑direct benefits like brand lift.

Formula

Incremental profit = Attributed revenue × Gross margin. ROMI = (Incremental profit − Spend) ÷ Spend × 100%. Revenue‑to‑spend ratio = Attributed revenue ÷ Spend.

ROMI vs ROAS vs ROI

ROAS focuses on revenue per dollar of ad spend (revenue ÷ spend) and ignores margin. ROMI incorporates margin to reflect profit. ROI applies more broadly to any investment and can include fixed costs beyond marketing.

Attribution and incremental lift

Accurate ROMI depends on incremental effects, not just correlated revenue. Use experiments or causal modeling to separate true lift from baseline demand and halo effects.

Best practices and pitfalls

• Use consistent margin assumptions by product mix and channel.
• Account for time lags and repeat purchases where relevant.
• Validate attribution with controlled tests or MMM.
• Combine ROMI with payback and CLTV to guide scaling decisions.