ROI calculator
What does social media return for you?
Enter your own numbers. You'll see your return straight away, when you'll have earned back the investment and how many new customers you need. Calculated honestly, with ramp-up time.
The ROI of outsourcing social media has two parts: gross profit on new customers and the value of the time you get back. Formula: ROI = (return − investment) ÷ investment. This calculator works through 12 months, with four months of ramp-up.
See the calculation per month
| Month | Customers | Return | Investment | Cumulative |
|---|
Return of – against an investment of – over 12 months.
An example based on your own assumptions, not a guarantee. Social media takes time to build: we count month 1 without new customers and ramp up to your full scenario over four months.
How we calculate
Transparent to the euro
No black box. These are the formulas behind the calculator.
Gross profit on new customers
Extra customers per month × ramp-up factor × customer value × gross margin. The ramp-up factor is 0% in month 1, then 25%, 50%, 75% and 100% from month 5.
Value of your time
Hours per week × 52 ÷ 12 × your hourly value. You get that time back from the first month, because we take over the work.
Customers needed to break even
(Monthly investment − value of your time per month) ÷ (customer value × margin). This is the key question: is it achievable for your business?
Return in year 1
(Total return over 12 months − total investment) ÷ total investment × 100%.
Worked example
An installer in Naaldwijk
A fictional example to show the maths. A new customer brings in €2,500 in revenue on average, at a 40% margin. The owner now spends 4 hours a week on social media, and an hour of his time is worth €50.
- Time back: €867 per month4 hours × 52 ÷ 12 × €50.
- Profit per new customer: €1,000€2,500 × 40%.
- At €1,250 a month: 0.4 customers needed(€1,250 − €867) ÷ €1,000. One new customer a month covers the investment comfortably.
- At €2,000 a month: 1.2 customers needed(€2,000 − €867) ÷ €1,000.
Questions
Questions about the ROI of social media
Can't find your question? Call or email us and we'll explain.
How do you calculate the ROI of social media?
ROI is (return minus investment) divided by investment. For social media the return has two parts: gross profit on new customers (number of customers × customer value × margin) and the value of the time you get back (hours per week × 52 × your hourly value).
Why do you include a ramp-up period?
Social media doesn't work from day one. Building an audience takes time. So we count month 1 without new customers and ramp up to your full scenario over four months. That gives a more honest picture.
Is the outcome a guarantee?
No. The calculator uses your own assumptions. It shows what's needed to earn back the investment, so you can make an informed choice. In the intro call we check together whether your assumptions are realistic for your market.
What is the break-even point?
The number of new customers per month you need to earn back the monthly investment, after deducting the value of the time you get back. Everything above that is profit.
What does KIJK62 cost per month?
That depends on your channels, the number of posts and the studio days. After the intro call you get a fixed monthly price. The amount in the calculator is an example you can change yourself.
Discuss your calculation with us
Bring your outcome to the intro call. We'll check together whether your assumptions hold for your market, and what it takes to reach them.