Campaign ROI estimate
A founder spends $2,500 on a campaign that produces $7,800 in revenue and costs $1,800 to deliver.
- Project spend: $2,500
- Revenue generated: $7,800
- Delivery cost: $1,800
Growth planning
Compare campaign spend with revenue and fulfillment cost to estimate return on investment.
Start with conservative inputs, copy the result, then test a best-case and worst-case version. For production decisions, compare the estimate against actual accounting, analytics and payment data.
ROI compares the net gain from a project with the amount spent to produce that gain. It is most useful when the revenue and delivery costs can be tied to a clear campaign, channel or experiment.
ROI = (revenue - delivery cost - project spend) / project spend.
A founder spends $2,500 on a campaign that produces $7,800 in revenue and costs $1,800 to deliver.
No. ROI compares profit with the investment used to generate it. Profit margin compares profit with revenue.
ROI needs an investment amount to be meaningful. If there is no project spend, compare net gain, margin or opportunity cost instead.
No. Attribution is often noisy. Treat the output as a scenario model and compare it with analytics, CRM and payment data.