With the illustrative inputs below, the result is 100 %.
Try this with your own numbersFormula and worked example
ROI = (revenue × contribution margin − marketing cost) / marketing cost × 100
| Input | Example |
|---|---|
| Attributed revenue | 15,000 |
| Pre-marketing contribution margin | 40 % |
| Marketing cost | 3,000 |
| Calculated result | 100 % |
Choose reliable inputs
Track purchased quantities, usable yield, labour and waste before deciding on a selling price. For this catering calculation, use recipe sheets, supplier invoices and stock counts and a consistent definition of one event order.
- Ingredients: include the portion belonging to this event order or reporting period, and record where the value came from.
- Staffing: include the portion belonging to this event order or reporting period, and record where the value came from.
- Delivery: include the portion belonging to this event order or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
How is marketing ROI different from ROAS?
ROAS divides revenue by advertising spend. This model subtracts variable delivery costs and marketing spend before calculating return.
Attribution is an input assumption; revenue is not the same as profit.
What if this input changes?
If attributed revenue rises by 10%, this example changes by 20 %. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.