Sponsored Post ROI Calculator
Calculate the return on investment for your sponsored content campaigns and brand partnerships.
📐 How It Works
Formula
ROI = ((Conversions × Avg Sale Value) - Post Cost) / Post Cost × 100This formula measures the profitability of sponsored content by comparing the revenue generated to the cost of the campaign. First, we calculate expected conversions by multiplying reach by conversion rate. Then multiply conversions by average sale value to get revenue. Subtract the post cost and divide by post cost to get the ROI percentage. Positive ROI means the campaign is profitable.
💡 Example Calculation
For a $500 post with 50,000 expected reach, 2% conversion rate, and $50 average sale: Conversions = 50,000 × 0.02 = 1,000. Revenue = 1,000 × $50 = $50,000. ROI = ($50,000 - $500) / $500 × 100 = 9,900%. This exceptional ROI (100%+ is considered good) shows a highly successful campaign.
❓ Frequently Asked Questions
FAQ
ROI above 100% (doubling the investment) is generally considered good. However, many successful campaigns aim for 200-500% ROI. Brand awareness campaigns may accept lower direct ROI for long-term benefits.