Return on social media effort/spend. The Social Media ROI Calculator takes monthly spend (ads, tools, agencies), hours spent per month, loaded cost per hour of that time, monthly revenue attributed to social, gross margin and returns social media roi (profit basis) plus total monthly cost including time, gross profit after cost. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Marketing metrics are most useful as trends and comparisons between channels. Measure every campaign the same way, over the same period, and judge it against your gross margin rather than against revenue alone. Use the worked example below to check the maths against your own figures.
How the Social Media ROI Calculator works
Social media is rarely free: the hours count. Including time at its loaded cost gives an honest picture of what the channel returns.
Worked example
With the example values (monthly spend (ads, tools, agencies) of $2,500, hours spent per month of 40 hours, loaded cost per hour of that time of $30, monthly revenue attributed to social of $9,000, gross margin of 40%), the social media roi (profit basis) is -2.70%; total monthly cost including time $3,700.00, gross profit after cost -$100.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is social media roi (profit basis) calculated?
ROI = (revenue × margin − (spend + hours × hourly cost)) ÷ total cost.
Which figures do I need?
Monthly spend (ads, tools, agencies), hours spent per month, loaded cost per hour of that time, monthly revenue attributed to social, gross margin. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How often should I track this metric?
Weekly for live campaigns, monthly for channel comparisons, and always over the same period for spend and results so the figures line up.
