Digital Marketing ROI Calculator

7 Important Metrics Every Startup Founder Should Care About

Do you all know that it’s more costly to acquire new prospects than to retain existing ones! That’s why extending your CLV is essential to a healthy business model & overall business strategy… Don’t believe us? Here is an Ebook on 7 vital metrics every startup founder should know – you need to read if you want to increase profitability, retention and overall ecommerce success.

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Why these 7 metrics are significant for your business and should be measured at regular intervals?

Generate real ROI on customer acquisition

Enhance your retention marketing strategy

Create more effective messaging, targeting & nurturing

How to Use the Calculator – Step-by-Step

Enter Total Revenue
Input the revenue generated as a result of your digital marketing campaigns.
Enter Total Cost
Add up all expenses related to your marketing efforts, including paid ads, content, subscriptions, and any external services.
Click ‘Calculate’
Instantly view your net profit and ROI percentage to evaluate the success of your marketing campaigns.

Tip: Regularly track your marketing ROI to ensure that you’re optimizing your spend for the best return.

Understanding Digital Marketing ROI

Digital marketing ROI provides a clear picture of how effective your marketing campaigns are in generating revenue relative to the money spent. A positive ROI indicates that your campaigns are profitable, while a negative ROI suggests that changes may be needed to improve performance.

Note: For more detailed analysis, consider using our Ad Spend vs Revenue Calculator or Campaign Performance Index Calculator

Industry Benchmarks for Marketing ROI

Industry	Typical ROI (%)
E-commerce	200%–500%
SaaS / B2B Services	300%–700%
Financial Services	400%–800%
Local Businesses	150%–400%
Education & Training	250%–600%

Note: Benchmarks vary depending on the industry, marketing objectives, and business model.

Practical Example

Scenario:

Total Revenue: ₹500,000
Total Marketing Cost: ₹200,000

Calculation:

Net Profit: ₹500,000 – ₹200,000 = ₹300,000
ROI: ((₹500,000 – ₹200,000) ÷ ₹200,000) × 100 = 150%

Interpretation:

A 150% ROI means that for every ₹1 spent on marketing, the business earned ₹1.50 in profit. This suggests a healthy return on investment.

Tips to Improve Marketing ROI

Focus on High-Performing Channels:
Prioritize channels that provide the best return and optimize those that are underperforming.
Track Conversion Metrics:
Improve conversion rates to get more value from the same marketing spend.
A/B Test Campaigns:
Regularly test ad creatives, copy, and targeting strategies to optimize your return on investment (ROI).
Enhance Customer Retention:
Focus on retaining existing customers, as it’s often more cost-effective than acquiring new ones.
Use Data-Driven Insights:
Leverage analytics to optimize your campaigns and make data-driven decisions for future marketing efforts.

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