Pipeline & Measurement · Last reviewed August 6, 2026
What is Return on Marketing Investment (ROMI)?
Return on marketing investment, or ROMI, estimates the financial return generated by marketing relative to the marketing investment required. Strong versions use incremental contribution or profit rather than attributed revenue alone and include the relevant media, people, tools, agencies, and program costs.
Why does Return on Marketing Investment matter?
ROMI connects marketing to business economics, but the result is only as credible as its baseline, attribution or causal method, time horizon, and cost definition.
How do you calculate Return on Marketing Investment (ROMI)?
A common formula is incremental contribution attributable to marketing minus marketing investment, divided by marketing investment.
ROMI formula and worked example
- Formula: (incremental contribution from marketing − marketing investment) ÷ marketing investment.
- Example: ($750,000 incremental contribution − $250,000 investment) ÷ $250,000 = 2.0, or 200% ROMI.
- Document the baseline, causal or attribution method, time horizon, margin treatment, and all included costs.
Related terms
- Return on Ad Spend
- Incrementality
- Marketing Efficiency Ratio
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Use the Duet ROI CalculatorBy Duet Editorial Team · Last reviewed August 6, 2026