In this article, we will discover the best Return on Investment calculator or ROI calculator to determine the ROI of your marketing actions using Online, Excel and Tools to Maximize the Profitability of Business Quickly.
As we explained before in this article “What is the Return on Investment (ROI)? ROI Definition and Usage“, that every effort made by a company must be measured in terms of conversion and results obtained from the amount invested in it and that is exactly what ROI does.
In this article, we discovered how to determine the ROI of your marketing actions using Return on Investment Formula or ROI Formula to Maximize the Profitability of Business Quickly.
It is one of the most useful metrics that should be known about a business, it is essential since it provides information on whether there is monetary gain or not through the investment that is being made.
Return on Investment calculator or ROI calculator
In the following lines, you will find the best Return on Investment calculator or ROI calculator Online found on the web. Each one has its values and benefits, but the most important thing is that it will do a great task for you.
It is worth taking a look. It is free and provides the total ROI rate, as well as an updated return on investment using real investment dates or simple investment.
This return on investment calculator calculates an annual rate of return using exact dates. Also known as ROR (rate of return), these financial calculators allow you to compare the results of different investments.
Online and also free, quite intuitive.
This Inbound Marketing tool also has an online ROI calculator.
This calculator simulates the potential return on investment that you could make by performing Inbound Marketing with the HubSpot software.
To stop asking you questions about how much you will save in a year, it is best to use this quality calculator, and online.
Return on Investment calculator or ROI calculator in Excel
Step by step, we leave you how to calculate the ROI with the Excel tool. If you can open a spreadsheet right now.
Label your columns so you can easily identify information for future reference.
Label the first column (A1) “Name of the Investment”, then “Investment Amount”, “Profit” and “ROI” for the headings of the following columns (B, C, and D).
Then, go to the next line to start entering information about your investments.
Write the information by your headings on the second line of your spreadsheet.
Briefly describe the investment you made in cell A2.
It includes all the costs related to the investment, including taxes, fees and advance payments of the column “Amount of the investment” (cell B2).
Total of the profit made as a direct result of that investment in the “Profit” column (cell C2).
Profit is the amount you made above your total investment amount. You can calculate your return on investment on a weekly, monthly or annual basis.
Calculate your ROI by dividing the benefit by the amount of the investment. Write this formula in the column «ROI» (cell D2) to do the calculation automatically: (= C1 / B1) minus the quotes.
When you finish the first ROI calculation, enter your next investment on the next line.
One of the main purposes of making a return on investment calculations is to compare your investments to see which ones work best.
When you reach D3, select cell D2, click and hold the small square at the bottom right of the cell, and drag it down with the mouse.
This will copy the formula of your first cell into the next cell. Do this for each ROI cell you make in the spreadsheet.
Format your spreadsheet to make your results easier to read and digest.
Bold your headings, convert your ROI into a percentage and give your investment amount a dollar sign and decimals.
To do this, right-click on the cell or column and select “Format Cells”. Make your “Investment Name” column wider to accommodate all your words.
Return on Investment calculator or ROI calculator Tools
In the digital environment, there are many tools through which it is possible to develop actions to achieve your Marketing objectives; Each channel generates different effects.
Social networks, for example, are another communication channel within your digital marketing strategy, so no tool provides you with hard data about ROI but rather approaches to them.
In Social Media, there are some tools whose objective is to facilitate the calculation of the ROI at least in Social Media and here we present them:
It is a software that will help you acquire, convert, retain and know the percentage of customers who have completed the purchase cycle of your product and/or service to increase your conversion rate.
The platform has a completely self-managed service and also offers customer loyalty programs on all channels.
Regarding the benefits, it considers four groups that are the following to be relevant:
- Visibility and traffic: How much would it cost to get the same visits if it had been paid in terms of CPC (Cost-per-click)?
- Public relations: Use the equivalent value, a methodology used in offline advertising.
- Word of mouth
- Market research
This software offers a complete set of statistical, social, advertising, guidance and web experience management solutions, to which you must add a control panel from which you can visualize everything you need to control a marketing campaign.
Adobe Social has a system defined by experts as reliable and sophisticated, which directly connects and relates business results obtained with interactions in social networks.
In this way, it is always possible to know how many sales are being achieved effectively thanks to the promotion in the networks and if the campaigns are offering the expected results or not.
Through the theory of equivalent costs, the platform can estimate the impact on the benefits of the activity, and even at a more granular level.
Some experts claim that this methodology is not the most suitable for calculating the true ROI, but allows you to obtain an estimate.
The company assures that they have carried out a couple of case studies comparing the methodology with its application in traditional channels and the results are likely.
In the digital environment, the automation tools for the calculation of ROI still consider only online measurement parameters, which would not necessarily allow us to know the return of an advertising investment at 100% since some online actions could generate effects in the offline environment that do not they would be considered in the measurement.