ROMI Calculator
Calculates the return on marketing investment, factoring in the cost of goods sold.
Formulas
- ROMI = (gross profit − advertising costs) / advertising costs × 100%.
- Gross profit = revenue × margin, or revenue − the cost of goods sold.
ROMI based on revenue is inflated: revenue includes the cost of the goods themselves. With advertising costs of 50,000, revenue of 300,000, and a 30% margin, the revenue-based figure is 500%, while the profit-based figure is 80%.
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