ROI Calculator

3 key numbers you need to calculate YOUR ROI

How to use this ROI calculator:

  1. Start off with an approximate budget. How much are you willing to invest in digital marketing?

Enter that amount under “Budget”.

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

  1. 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.

  1. 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.

  1. So, we have 63 customers. How much on average does 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 can figure out what our ROI (return on investment) is.

If our budget is $2500, and our revenue is $9375, then our ROI 375%.

For every dollar you spend, you'll be making back a return of 375%.

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