Quick Answer — ROMI Formula

ROMI = (Revenue − Marketing Cost) ÷ Marketing Cost × 100

A good ROMI is 500% (5:1). Email marketing averages 3,600–4,200% ROMI. Paid search averages 200–400% ROMI.

Use our free ROMI Calculator to compute your return on marketing investment instantly — supports basic ROMI and gross-profit ROMI with COGS.

The Two ROMI Formulas

Formula 1 — Basic ROMI

ROMI = (Revenue − Marketing Cost) ÷ Marketing Cost × 100

Example: Campaign revenue $50,000, marketing cost $10,000 → ROMI = ($50,000 − $10,000) ÷ $10,000 × 100 = 400% ROMI

Formula 2 — Gross-Profit ROMI (recommended for product businesses)

ROMI = ((Revenue × Gross Margin %) − Marketing Cost) ÷ Marketing Cost × 100

Example: $200,000 revenue, 60% gross margin, $50,000 marketing spend → (($200,000 × 60%) − $50,000) ÷ $50,000 = ($120,000 − $50,000) ÷ $50,000 = 140% gross-profit ROMI

ROMI Benchmarks by Channel

ChannelAverage ROMINotes
Email Marketing3,600–4,200%$36–$42 return per $1 (Litmus 2026)
SEO / Organic Search275%Compounds over 12+ months
Content Marketing300%Long-term asset; improves with age
Paid Search (SEM)200%Faster results; higher cost
Paid Social Media120%Higher for B2C; lower for B2B

ROMI vs ROI — What's the Difference?

ROMI isolates marketing spend specifically. The denominator includes only marketing costs: ad spend, agency fees, creative, and tools. ROI typically refers to total business investment. You can have a 400% ROMI from a campaign and a much lower overall business ROI if other costs are high.

Use ROMI to evaluate marketing channels and campaigns. Use ROI to evaluate the overall profitability of the business.

Free ROMI Calculator

Enter campaign revenue and cost. Supports basic ROMI and gross-profit ROMI with COGS. Channel presets included.

Use the Free ROMI Calculator →
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Waseem Shahzad

ROMI benchmarks from Litmus State of Email 2026, WordStream, and HubSpot State of Marketing 2026. About →