How to Calculate ROI. In simple terms, the best formula for marketing ROI is (Gross Profit – Marketing Investment) Marketing Investment. Here’s how this common mistake can get you into trouble. Let’s say that her company’s average profit margin for this type of product/service is 50%. Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI How to Calculate ROI Mike Turco. Loading. Unsubscribe from Mike Turco? Cancel Unsubscribe. Working. Subscribe Subscribed Unsubscribe 371. Loading. How To Calculate Rental Income - Huge Mistake Most Investors Make - Duration: 8:40. Kris Krohn 127,689 views. 8:40. The marketing ROI formula for calculating return on investment is dependent on how you track revenue, profits and expenses. Here are calculators and a demo. ROI (Return on Investment) is probably the most important calculation one needs to make to ensure the long-term viability of their business. It is not enough to build in a profit margin on the product or service being offered. You need to make decisions regarding how to allocate resources. For ex. Return on investment (ROI) is a financial metric of profitability that is widely used to measure the return or gain from an investment. ROI is a simple ratio of the gain from an investment relative to its cost. It is as useful in evaluating the potential return from a stand-alone investment as it is Return on investment (ROI formula) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment. The higher the ratio, the greater the benefit earned. Return on investment refers to the tangible and intangible benefits you receive from the use of your time or money. Calculating intangible returns and returns on the amount of time you invest in a project can be trickier than calculating monetary returns on financial investments. How to calculate ROI (Return on Investment) The return on investment calculator allows you to assess the worth of every dollar you invested. All you need to do is input the amount of your initial investment and the final return, and mark the time period across which the investment spans.