Test an ROI scenario
Use consistent inputs. This tool calculates a scenario; it does not establish causality.
Enter consistent inputs
Use revenue for the chosen observation period, contribution margin before the marketing investment, and the full relevant marketing cost for the same scenario. Select a currency for display; the tool does not convert exchange rates.
The revenue input is labeled incremental because the equation aims to describe additional contribution. If your available number is attributed revenue, treat the result as an attribution-based scenario and label it accordingly outside this tool. Attribution assigns credit; it does not automatically measure the counterfactual.
What the calculator returns
| Output | Equation |
|---|---|
| Incremental contribution | Incremental revenue × contribution margin |
| Contribution after marketing | Incremental contribution − marketing investment |
| Marketing ROI | Contribution after marketing ÷ marketing investment × 100 |
| Break-even revenue | Marketing investment ÷ contribution margin |
Contribution margin is entered as a percentage. ROI requires an investment greater than zero. When margin is zero, no finite amount of revenue breaks even under this equation. The tool reports that condition rather than dividing by zero.
Check a hypothetical scenario
With $100,000 incremental revenue, a 60% contribution margin and $30,000 marketing investment, contribution is $60,000, contribution after marketing is $30,000 and ROI is 100%. Break-even revenue is $50,000. These are illustrative values for checking the calculation, not NCMC results or expected returns.
Include the relevant costs once
Decide whether the investment includes media, fees, production, technology and internal effort. Agree the contribution basis with finance to avoid subtracting a cost in both the margin and the marketing investment. The tool cannot inspect that accounting choice for you.
Test uncertainty
Try a lower revenue case, a lower margin case and a higher cost case. Identify which input changes the decision most. A useful scenario makes uncertainty visible instead of hiding it behind a precise percentage.
Data and limitations
Inputs remain on the page and are not submitted or stored by this calculator. The tool performs arithmetic only. It does not estimate attribution, incrementality, tax, customer lifetime value or financial reporting profit. The accompanying ROI guide explains the interpretation. Without JavaScript, the equations and worked example remain readable and usable.
