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Social Media

Social Media ROI Calculator

Calculate the true return on investment from your social media campaigns. Track ad spend, content costs, and revenue to understand your social media profitability.

Investment Costs

Facebook, Instagram, TikTok ads, etc.

Graphics, video production, copywriting

Scheduling, analytics, design tools

Team salaries, agency retainers

Returns & Value

Sales directly attributed to social

Estimated value of brand awareness

Number of leads from social

Estimated value per lead

Understanding Social Media ROI

Social media ROI measures the return on investment from your social media marketing efforts. Unlike traditional marketing channels, social media ROI can include both direct revenue and intangible benefits like brand awareness and engagement.

What is a Good Social Media ROI?

Social media ROI benchmarks vary by industry and objectives, but here are general guidelines:

  • 100%+ ROI: Excellent performance - your social media is highly profitable.
  • 50-100% ROI: Good performance - generating positive returns.
  • 0-50% ROI: Break-even to moderate - room for optimization.
  • Negative ROI: Losing money - requires strategy review.

Average ROI by Platform

Facebook

Average ROAS: 4:1 for e-commerce, 2:1 for B2B

Instagram

Average ROAS: 3.5:1, higher for lifestyle brands

TikTok

Average ROAS: 2-5:1, varies widely by content

LinkedIn

Average ROAS: 2:1 for B2B, higher CPL but quality leads

How to Calculate Social Media ROI

The comprehensive social media ROI formula includes:

ROI = ((Revenue + Lead Value + Engagement Value - Total Costs) / Total Costs) x 100

Total Costs include: Ad spend, content creation, tools/software, and labor/agency fees.

Total Value includes: Direct sales, lead pipeline value, and estimated engagement value.

Tips to Improve Your Social Media ROI

  • Track attribution properly: Use UTM parameters and pixel tracking for accurate measurement.
  • Focus on high-converting platforms: Double down on platforms that drive the most revenue.
  • Optimize ad creative: Test multiple variations to find top performers.
  • Retarget warm audiences: Retargeting typically has 3-10x higher ROI than cold traffic.
  • Reduce content costs: Repurpose content across platforms to maximize efficiency.
  • Improve landing pages: Better conversion rates mean higher ROI from existing traffic.

Common ROI Calculation Mistakes

  • Ignoring labor costs: Time spent on social media has a real cost.
  • Last-click attribution only: Social often assists conversions without getting credit.
  • Not valuing engagement: Brand awareness and engagement have long-term value.
  • Short measurement windows: Some sales cycles take months.
  • Excluding tool costs: Scheduling, analytics, and design tools add up.

Want to Maximize Your Social Media ROI?

Our team runs performance-focused social media campaigns that deliver measurable results. Book a call to discuss your strategy.

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