Last updated: March 2025
Quick Answer
Social Media ROI = (Revenue − Costs) / Costs × 100. Include ALL costs: ad spend, tools, content creation, and employee time.
Key Takeaways
- ✓ Social Media ROI = (Revenue − Costs) ÷ Costs × 100
- ✓ Include ALL costs: ad spend, content creation, tools, and employee time
- ✓ A positive ROI means your social media investment is generating profit
- ✓ Social media also delivers hard-to-measure value like brand awareness
What Is Social Media ROI?
Social Media ROI measures the return on investment from your social media marketing activities. It compares the revenue generated through social channels against the total cost of your social media efforts — including ad spend, content creation, tools, and team time.
How to Calculate Social Media ROI
Social Media ROI = (Revenue from Social − Total Social Costs) ÷ Total Social Costs × 100
For example, if you generated $15,000 in revenue and spent $5,000 on all social costs, your ROI is 200%.
What to Include in Costs
- Paid advertising — Boosted posts, sponsored content, campaign budgets
- Content creation — Graphic design, video production, copywriting
- Tools and software — Scheduling tools, analytics platforms
- Employee time — Hours spent on strategy, content, and community management
Tracking Revenue Attribution
Use UTM parameters on all social links, create unique promo codes per platform, and install conversion tracking pixels. Accurate attribution is the key to meaningful ROI analysis.
What Is a Good Social Media ROI?
Any positive ROI is a win. Many brands target 3:1 to 5:1 returns. Compare against other channels using our ROAS Calculator or Email ROI Calculator.
Frequently Asked Questions
How do I calculate social media ROI?
Social Media ROI = (Revenue from Social - Cost of Social) / Cost of Social × 100. Include all costs: tools, ads, content creation, and employee time.
What is a good social media ROI?
Any positive ROI is good. Many brands target 3:1 to 5:1 returns. Note that social media also has hard-to-measure benefits like brand awareness and community building.