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Calculate your marketing return on investment. This tool helps local business owners understand the real financial impact of their ad spend and SEO efforts,
Your total monthly investment in marketing, including agency fees and ad spend.
Default: 2497
The estimated number of new leads your marketing efforts bring in each month.
Default: 50
The percentage of leads that convert into paying customers. Use your historical data.
Default: 20
The average total revenue you expect from a customer over their entire relationship with your business.
Default: 1500
This calculator determines your marketing ROI using the standard formula: (Revenue Generated by Marketing – Monthly Marketing Spend) ÷ Monthly Marketing Spend × 100%. First, it calculates the number of new customers by multiplying your 'Number of Leads Generated' by your 'Lead-to-Customer Conversion Rate'. Then, it determines the 'Revenue Generated by Marketing' by multiplying these 'New Customers' by the 'Average Customer Lifetime Value'.
A dental practice runs a targeted Google Ads campaign to attract new patients for routine check-ups and cleanings, aiming for quick patient
Average ROI: 388.9%
With a monthly spend of $1,500, generating 40 leads at a 25% conversion rate yields 10 new customers. At a CLTV of $700, total marketing revenue is $7,000. The ROI is ($7,000 - $1,500) / $1,500 * 100% = 366.7%. This shows a healthy return for a local service business.
A medical practice invests in SEO to attract new patients, understanding that organic traffic builds over time but has a high CLTV.
Average ROI: 2200%
With a monthly investment of $1,000, 20 leads converting at 20% means 4 new customers. At a CLTV of $3,000, marketing revenue is $12,000. ROI is ($12,000 - $1,000) / $1,000 * 100% = 1100%.
A professional services firm (e.g., accounting, legal) uses both SEO and Google Ads to generate a steady stream of high-value clients.
Average ROI: 450%
A $3,500 monthly spend, yielding 70 leads at a 30% conversion rate, results in 21 new clients. With a CLTV of $2,000, the total marketing revenue is $42,000. The ROI is ($42,000 - $3,500) / $3,500 * 100% = 1100%.
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Armitage tracks these numbers automatically across SEO and paid ads. One dashboard. Updated daily. No manual exports.
See your real numbersThis calculator uses the widely accepted marketing ROI formula: (Revenue Generated by Marketing – Marketing Costs) ÷ Marketing Costs × 100%. The inputs for leads, conversion rate, and customer lifetime value are used to project the 'Revenue Generated by Marketing'.
A strong marketing ROI target is often considered a 5:1 ratio, meaning you get $5 back for every $1 spent. Healthy ROI generally ranges from 4x to 8x your investment. For small to medium-sized businesses, a 500% ROI or 5:1 ratio is a solid benchmark. Your specific industry and profit margins will influence what's realistic for your business.
The most common formula is (Revenue – Marketing Costs) ÷ Marketing Costs × 100%. If you want to isolate the *incremental* revenue generated by marketing, you can use (Total Revenue – Organic Sales Revenue – Marketing Costs) ÷ Marketing Costs × 100%. This helps account for sales you would have made without any marketing spend.
Data accuracy across multiple channels is the primary difficulty in tracking ROI. Each platform reports differently. For example, email revenue tracking requires specific link-level attribution. Influencer marketing needs careful monitoring of contract terms, discount codes, and accurate attribution. Getting a unified view needs consistent tracking and reporting.
Not necessarily. While channels like email marketing boast a high average ROI of 4,200%, and SEO is around 2,200%, paid search can offer immediate results with a 400% average ROI. The best strategy for most local businesses combines channels. SEO builds long-term, compounding value, while paid ads deliver immediate leads. A balanced approach often yields the best overall return.
Look for clear, direct reporting that connects your marketing spend to actual revenue and profit. Good reporting includes key metrics like impressions, clicks, conversions, Cost Per Acquisition (CPA), gross profit, and even customer lifetime value projections. Avoid reports full of vanity metrics that don't directly impact your bottom line. You need to see how many new customers came from marketing and what revenue they generated.
CLTV is important for a complete picture of ROI. While a campaign might look like it has a modest immediate return, if it brings in high-value customers who make repeat purchases over years, the true ROI is much higher. Agencies focused on long-term growth will consider CLTV in their projections, showing you the compounding value of a new customer beyond their first purchase.
Armitage monitors your marketing metrics across every channel, every day. Get a free growth audit to see where you stand.
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