How do you calculate ROI?
Calculating your ROI is easy! Follow these simple steps:
- Subtract the cost of your investment (like your marketing campaign) from the money you made in return.
- Divide that number by how much you spent on the investment.
- Multiply the result by 100 to get your ROI as a percentage.
Formula:
ROI = (Final Value – Initial Cost) ÷ Initial Cost × 100
Or, if you want to make it even easier, use our ROI Calculator! It’s quick and simple to get your results!
ROI Calculator
How do you track ROI?
There are many ways to keep track of your ROI. Many businesses use tools like Google Sheets or Microsoft Excel to track campaign data easily.
If you're tracking paid marketing campaigns, you might be using a different term called ROAS (Return on Ad Spend) instead of ROI. ROAS focuses more on how much money you make from your ads.
What is a good ROI?
A good ROI means you're making more money than you spent. Generally, if your ROI is above 100%, you're earning more than what you invested. The higher the percentage, the better your return! For example, an ROI of 200% means you made 2 times the amount you spent.
How do I improve my ROI?
To improve your ROI, you can do a few things:
- Spend wisely: Make sure you're not wasting money on things that don’t bring in customers.
- Track your results: Always check how well your campaigns are doing and make changes if needed.
- Optimize your ads: Make your ads more attractive to your target audience to get more people to click.
What is the difference between ROI and ROAS?
- ROI measures the money you make compared to what you spend, looking at all your expenses and profits.
- ROAS is more specific to ads. It tells you how much money you earn for every dollar you spend on ads.
So, ROI is bigger picture, and ROAS focuses just on your ads! Read more about ROAS
