Operator Math
sales

Marketing ROI Calculator

Evaluate whether a marketing campaign or channel is profitable enough to scale.

Question answered

Is this campaign or channel profitable enough to keep, optimize, scale, or stop?

Numbers needed

Marketing spend, Impressions, Clicks, Leads, Customers, Average order value, Gross margin, Repeat purchase multiplier, Fixed campaign costs

Inputs

Show guidance for Marketing spend

Enter variable media or channel spend.

$
Show guidance for Impressions

Enter impressions delivered by the campaign or channel.

Show guidance for Clicks

Enter measured clicks or visits generated.

Show guidance for Leads

Enter qualified leads or intermediate conversions.

Show guidance for Customers

Enter paying customers attributed to the campaign.

Show guidance for Average order value

Enter average first-order or transaction revenue per customer.

$
Show guidance for Gross margin

Enter gross margin on campaign revenue.

%
Show guidance for Repeat purchase multiplier

Enter expected repeat revenue multiplier if supported by data.

Use 1 for one purchase, or a higher multiplier to include expected repeat purchase value.
Show guidance for Fixed campaign costs

Enter creative, tools, agency, or setup costs not included in spend.

$

Outputs

Good

Primary outputs

Net contribution$6,000.00

Gross profit after marketing spend and fixed campaign costs.

ROAS3

Revenue generated per dollar of marketing spend.

Supporting outputs

Cost per click$2.00

Marketing spend divided by clicks.

Cost per lead$20.00

Marketing spend divided by leads.

Cost per customer$100.00

Marketing spend divided by customers acquired.

Click-through rate5%

Clicks as a percent of impressions.

Lead conversion rate10%

Leads as a percent of clicks.

Customer conversion rate20%

Customers as a percent of leads.

Revenue generated$30,000.00

Revenue attributed to the campaign including repeat multiplier.

Gross profit generated$18,000.00

Campaign revenue converted to gross profit.

MER2.5

Gross profit generated per dollar of total campaign cost.

Break-even customers67

Customers required for gross profit to cover campaign cost.

Break-even CAC$180.00

Maximum CAC supported by the modeled economics.

Recommended next move

Good

Campaign economics support scaling

Net contribution is positive and customer acquisition cost is at or below gross profit per customer.

Traffic is the selected scale lever

Qualified traffic is the selected constraint to test next: add volume carefully and confirm click quality, conversion rates, and CAC hold as the campaign scales.

Customer conversion sensitivity

Compare how the result changes when a key assumption moves.

ScenarioCustomer conversion rateEstimated customersRevenue generatedGross profit generatedNet contribution
Conversion -50%10%50$15,000.00$9,000.00-$3,000.00
Conversion -25%15%75$22,500.00$13,500.00$1,500.00
Base conversion20%100$30,000.00$18,000.00$6,000.00
Conversion +25%25%125$37,500.00$22,500.00$10,500.00
Conversion +50%30%150$45,000.00$27,000.00$15,000.00

Operator context

Use this when

  • Use after a campaign has enough conversion data for an initial read.
  • Use before scaling spend in a channel.
  • Use to separate revenue ROAS from profit contribution.

Interpretation rules

Profit over ROASNeutral

A strong ROAS can still be unattractive if gross margin or fixed campaign cost is weak.

Scale after confidenceWarning

Increase spend only when attribution, conversion lag, and contribution are credible.

Operator notes

  • Use incrementality or baseline checks before treating all conversions as campaign-created.
  • Review funnel rates before deciding whether the issue is traffic, lead quality, or closing.

Watch for

  • Revenue ROAS can hide unprofitable campaigns.
  • Short attribution windows can undercount delayed conversions or repeat purchase value.

References

Follow-on calculators