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Laura Lake

How to Figure Your ROI?

By June 21, 2004

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Marketing departments often measure the success of a campaign on their Return on Investment (ROI). The calculation of ROI measures the profitability in which profits are expressed as a percentage of investment.

Use the calculation formula below to determine your ROI.

ROI = (Income/Cost) * 100

Comments
February 9, 2007 at 10:33 am
(1) ExpertSpeaks@Noz4Biz says:

Indeed ROI is an important metric for gauging the profitability of a business. In the world of e-commerce, particularly online retail stores, merchants often use COS (cost of sales), and conversion rate to determine their ROI.

February 9, 2007 at 10:41 am
(2) www.Noz4Biz.com says:

Here’s the formula to calculate COS% & conversion% for online stores:

COS(%)= {Cost/Revenue}*100

conversion(%)= {No. of sales/No. of clicks}*100

July 29, 2010 at 11:13 am
(3) ProLectric says:

When you say income, shouldn’t we clarify that and say profit. That would be the true ROI.

There is a large difference between “income” and profit.

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