Methodology: Social Media ROI Calculator

1. Scope

Computes social-media ROI from spend, reach, engagement, and conversion. It is a measurement tool, not an attribution model.

2. Inputs and outputs

Inputs

spend number (currency)
reach number
engagementRate percent
clickThroughRate percent
conversionRate percent
averageOrderValue number (currency)

Outputs

engagements

reach × engagementRate.
clicks

engagements × clickThroughRate.
conversions

clicks × conversionRate.
revenue

conversions × averageOrderValue.
roi

(revenue − spend) / spend.

Engine source: src/lib/social-media-roi-calculator/engine.ts

3. Formula / scoring logic

engagements  = reach * engagement_rate
clicks       = engagements * ctr
conversions  = clicks * cvr
revenue      = conversions * aov
roi          = (revenue - spend) / spend

4. Assumptions

Conversions attributable to the social campaign are captured fully by last-click.
No brand-halo effect is modelled.

5. Data sources

This tool relies on user inputs and standard arithmetic; no external benchmark data is bundled. When a question depends on an industry reference (for example, typical churn rates or hourly-wage medians), the linked adjacent tools cite their primary sources on their own methodology pages.

6. Known limitations

Vendor-reported engagement-rate benchmarks (Hootsuite, Sprout Social) are self-selected and we do not cite them.
Organic social has declining reach (platform algorithm changes); figures are a snapshot.

7. Reproducibility

Input
spend = $2,000, reach = 50,000, engagement = 5%, ctr = 20%, cvr = 2%, aov = $50.

Expected output
engagements = 2,500, clicks = 500, conversions = 10, revenue = $500, roi = -75%.

8. Change log

2026-04-24 methodology page first published.