How we calculate social media ROI
Social ROI applies the classic return-on-investment logic to the revenue attributed to social media.
Use the Social Media ROI CalculatorFormula
ROI (%) = ((attributed revenue − investment) ÷ investment) × 100
Variables
- investment
- Paid media, content production, tools, and team hours.
- attributed revenue
- Sales tracked back to social channels.
Step-by-step calculation
- We subtract the investment from the attributed revenue.
- We divide by the investment and convert to a percentage.
Worked example
Inputs
- Investment: $3,000
- Revenue: $9,000
Calculation
gain = 6,000
6,000 ÷ 3,000 = 2
ROI of 200%.
Common mistakes
- Attributing to social sales that had multiple touchpoints.
- Leaving content production costs out of the investment.
Frequently asked questions
Should I use revenue or profit?
For cash decisions, use the margin generated instead of gross revenue.
All values are in US dollars (US$). Results are estimates and do not replace professional advice.