Return on Investment (ROI)
Return on Investment, or ROI, measures how much profit an investment produced relative to its cost.
Net profit minus investment, divided by investment. That is ROI: did the investment earn more than it cost? It matters because it is the number finance actually trusts. Profit-based, so slower to compute and harder to game.
Signal Type
Metric Role
Metric Type
The Formula
Worked example
Benchmarks and interpretation
Where the number actually comes from
When to use it
Common Mistakes
In the REACT framework
ROI sits in the Convert phase speaking finance's language natively. Use ROAS for fast in-flight decisions and ROI for the verdicts that follow. The gap between the two is where overclaims get caught.
Related metrics
Frequently Asked Questions
What is Return on Investment?
Return on Investment, or ROI, measures how much profit an investment produced relative to its cost. It delivers the profit verdict after the campaign metrics have had their say.
How do you calculate Return on Investment?
Use the formula: ROI = (Net Profit - Total Investment) ÷ Total Investment × 100. Keep both inputs in the same reporting period and avoid mixing users, sessions, events, or customers unless the formula calls for it.
What data do you need for ROI?
You need total investment and net profit, pulled from the relevant connected sources and computed for the same period.
What mistakes should you avoid with ROI?
Do not confuse ROI with ROAS: one measures profit, the other revenue. And do not cherry-pick which costs count, because a flattering ROI built on missing costs eventually meets a CFO.
When should marketers use ROI?
Use ROI for the decisions that outlast a campaign: whether a channel, programme, or investment deserves to exist next quarter. It is slower than ROAS and harder to argue with.
What is a good ROI?
Positive is the floor, but good ROI clears your cost of capital and the alternative uses of the money. Judge it against what else the budget could have done.
Sources and methodology. ROI formula and definition derive from standard marketing analytics practice and platform reporting conventions. REACTIQ360 harmonises source data from Ad platforms and marketing spend, CRM / ecommerce / billing, Harmonisation layer and applies a consistent same-period computation methodology.
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