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Is the Campaign Worth It?

Spending $3,000 to generate $12,000 of revenue at 50% margin yields $3,000 net profit — a 100% ROI. Every dollar returned $4 of revenue; after cost you kept $1 of profit per dollar spent.
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Results

Visualization

Cashbizly provides illustrative business estimates only. Results depend on your inputs and assumptions and are not accounting, tax, or legal advice. Consult a CPA or financial advisor before major decisions. Tax-year figures (mileage, QBI, SEP, etc.) are labelled by year and should be verified at IRS.gov.

How It Works

Net Profit = Revenue x Margin% - Spend. ROI% = Net Profit / Spend x 100. This is return-on-marketing-investment; always use margin-adjusted profit, not raw revenue, or you overstate ROI. Attribution is the hard part — be conservative about which revenue truly came from the campaign.

What Should You Do?

Scenario 1: the same spend at 30% margin yields only $600 profit (20% ROI). Scenario 2: halving spend but keeping revenue doubles ROI. Scenario 3: if you cannot attribute revenue confidently, assume less and treat ROI as an upper bound.

Frequently Asked Questions

Revenue or profit ROI?

Profit ROI (margin-adjusted) is the honest number; revenue ROI overstates because it ignores cost of goods.

How do I attribute revenue?

Use trackable links, promo codes, or holdout testing; over-attribution inflates ROI.

What ROI is good?

Varies by channel and margin, but positive and exceeding your cost of capital is the bar. Compare to CAC/LTV.

Authoritative References

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