Dominic Monn
Founder, MentorCruise
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Xyrenne Khaice Eustaquio
Marketing Director, Valheim Server Hosting
Phil McParlane
Founder, 4 day week
This calculator helps you measure and compare the return on investment across different marketing channels. By inputting your customer lifetime value and data for each marketing channel, you can visualize which channels deliver the best results and make more informed decisions about your marketing budget allocation.
Start by entering your average customer lifetime value, then add your marketing channels one by one. For each channel, input the budget spent and number of conversions generated. The calculator will automatically display your total investment, total revenue, overall ROI percentage, and identify your best performing channel.
The calculator allows you to add multiple marketing channels to analyze. You can:
- Name each channel (e.g., "Facebook Ads," "Google PPC," "Email Marketing")
- Enter the budget spent on that specific channel
- Input the number of customer conversions the channel generated
- Add new channels using the "Add Marketing Channel" button
- Remove channels you no longer want to track with the "Remove" button
The ROI is calculated using this formula: (Total Revenue - Total Investment) ÷ Total Investment × 100%. For example, if you invested $5,000 and generated $25,000 in revenue, your ROI would be 400%. The calculator applies this formula both to individual channels and to your overall marketing efforts.
Customer Lifetime Value (CLV) represents the total revenue you expect from a single customer throughout your business relationship. This metric is crucial because it helps you understand the long-term value of acquiring a customer, not just the immediate purchase. The calculator multiplies your CLV by the number of conversions to determine total revenue.
The "Channel Performance" section shows the ROI percentage for each marketing channel, allowing you to directly compare their effectiveness. The "Best Performing Channel" highlights which marketing effort is giving you the highest return. This information helps you identify which channels deserve more investment and which might need optimization.
Yes, you can customize channel names to match your specific marketing activities. Simply click on the channel name field (which might show a default name) and type in a more descriptive name like "Instagram Ads" or "Email Newsletter" to keep your analysis organized and relevant to your business.
The calculator allows you to add multiple marketing channels to compare their performance. There's no practical limit, so you can track all your digital marketing efforts in one place—from social media advertising and email campaigns to content marketing and SEO.
For most businesses, monthly updates provide a good balance between timely data and meaningful trends. However, you might want to recalculate more frequently when testing new channels or campaigns, or less frequently for channels with longer conversion cycles.
By providing clear ROI figures for each marketing channel, the calculator helps you identify which efforts deliver the best returns. This allows you to make data-driven decisions about reallocating your budget, optimizing underperforming channels, or doubling down on high-performing ones to maximize your overall marketing effectiveness.
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