ROI Calculator

What:

This ROI calculator shows you what the ROI may be on your inbound digital marketing ad spend based on metrics you can estimate.

Use the calculator to tell determine which of the 3 key numbers (see our blog all about the 3 key numbers that affect ROI) you'll have the best chance at improving, and work your way from there to achieve the best/better results for your campaigns.

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Why:

Here's why you should keep this calculator close by.

A. You're considering launching a digital marketing campaign, and plan on directing traffic from a digital ad to your landing page, use this to predict what your ROI may be.

B. You already run digital ads and are wondering why you aren't seeing a return on your investment.

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How:

Here's how to use our ROI calculator:

1. Start off with an approximate budget. How much are you investing in your digital marketing campaigns? Enter that amount under “Budget”.

For now, we will pretend your budget is $1000.
(Budget doesn’t change the ROI percentages)

2. Next we need to know what it'll cost to bring a visitor to your site, or CPC (cost per click) in marketing terms.

The CPC will vary depending on which platform you’re utilizing, what industry you’re in, the service/ product you sell, its price, and other factors.

Let’s pretend the CPC of your product is $2. By now the calculator will compute how many visitors you'd get.

If your budget is $2500, and the CPC is $2, then your digital marketing will bring you 1,250 visitors.

3. The next important factor is your conversion rate. Of the visitors visiting your website, what percentage of them actually convert and purchase?

Conversion rates usually range somewhere between 1% - 5%, depending on the industry. (During Q4, conversion rates may even go up to 10%.)

For our example, we’ll enter a conversion rate of 5%.

Now that we’ve entered the conversion rate, the calculator displays that based on our budget, CPC, and conversion rate, you 'll get 63 customers from your digital marketing campaign.

4. How much on average did each customer spend, or, in digital marketing terms, what is the AOV / LTV (average order value)?

Let’s pretend our AOV is $150.

If so, 63 customers will net us a revenue of $9,375.

Now that we have our revenue calculated, the calculator will compute what our ROI (return on investment) is.
If you set your budget to $2500, and the revenue is $9375, then your ROI is 375%.
For every dollar you spend, you can predict a return of 375% on your investment.