It's not a secret to anyone that calculating Return on Investment (ROI) can quickly become a nightmare, particularly if math is not your strong suit.
Fortunately, this template will show you how to easily calculate ROI using automatic calculations in Excel or Google Sheets.
Memorizing and completing lots of complex formulas is overwhelming, and a large reason why many hesitate to calculate their ROI. Sometimes it can even be difficult to know where to start.
Though have no fear, this ROI Calculation Template will help to solve this equation for you once it has been adapted to your business model.
We hope that this template is useful to you. After all, our goal is to help businesses grow — the success of our clients always being our main motivator.
No doubt there are thousands of ways in which we can provide our clients with the best buying experience, growing our company along the way.
Offering the best buying experience that we can delights our customers, resulting in repeat business. What does this mean? Yes — a better return on investment!
Before explaining how the template works, I am going to go into a bit more detail on what ROI is exactly.
ROI means 'Return on Investment' (which you may have already seen above). Though the important thing to remember is that these three letters that we have been mentioning are key to determining whether your business is prospering or not.
Finding out how important ROI is for your company can make even the most math-phobic of business owners eager to calculate this figure for their companies.
In order to calculate ROI, we simply need to find out what the costs were for our business, campaign, etc. and subtract it from the earnings that we made from this activity. The result can be negative or positive, depending if sales were higher or lower than the costs.
This simple equation will give us the ROI in currency units (dollar, euros, etc.), which is the profit that will be earned by our company after subtracting marketing investment in marketing. The formula would be: ROI = Earnings - Cost.
If we would like to know what our ROI is as a percentage in relation to the investment cost, we can simply subtract cost from earnings, the result of which can be divided by the cost. The formula in this case would be % ROI = (Earnings - Cost) ÷ Cost
Congratulations! Now you know how to calculate ROI both in monetary and percentage form. You can repeat this process for each campaign that you have done. In my case, I analyzed four marketing campaigns that were completed throughout last year.
Here you can see our completed table after calculating the ROI for all four of our campaigns.
If you are concerned about finding the total ROI, don't worry, our template automatically calculates these figures (including total cost, total earnings, total monetary ROI, and total percentage ROI) for you based on the earnings and costs that you have entered for each campaign.
You will also be able to better see the results of your campaigns in the graph that is automatically generated based on the data that you provide. This graph allows you to compare the ROI of all of your campaigns and observe any variations
It really is that simple to calculate the ROI of your marketing campaigns! Don't waste any more time putting off calculating this vital figure for your company, use what you have learned here together with our template to easily calculate your ROI in Excel or Google Sheets. Just click on the button below to get your template.