# Margin Return on Marketing Investment (mROMI)

**Margin return on marketing investment** (mROMI) refers to the incremental profits created by marketing. It’s an indicator that helps to measure the effectiveness of a marketing investment and/or evaluate the value of marketing budgets enabling easier marketing budget planning. Its equation can be seen below.

[**ROMI**](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/return-on-marketing-investment-romi) **and mROMI are the key essential indicators that show you the global performance of your business at the highest level.** mROMI can also be called "Profit ROI" because it's calculated with profit in the numerator.

| **mROMI = -1**                | You directly lost all of your investment, no profit has been generated.                                     |
| ----------------------------- | ----------------------------------------------------------------------------------------------------------- |
| **mROMI is between -1 and 0** | Your return was lower than your Marketing Investment.                                                       |
| **mROMI = 0**                 | Your direct return equals your Marketing Investment.                                                        |
| **mROMI is higher then 0**    | Your Marketing Investment was efficient from a Profit point of view. Higher number means higher efficiency. |

### Parameters

**`Calculation:`**

 `mROMI = (gross profit - marketingInvestment - otherMarketingExpense ) / ( marketingInvestment + otherMarketingExpense )`

**`Example:`**` ``mROMI = ( 300 000 - 100 000 - 10 000 ) / ( 100 000 + 10 000) ≐ 1,73`

**`Unit:`**` ``Number`