Affiliate Marketing ROI Calculator
Calculate your campaign profitability and return on investment instantly.
Total Revenue
$0.00
Net Profit
$0.00
CPA (Cost Per Acquisition)
$0.00
Return on Investment
0%
Understanding Affiliate Marketing ROI
In the world of affiliate marketing, Return on Investment (ROI) is the ultimate metric for success. It determines whether your traffic acquisition strategy is sustainable or if you are burning through your budget without realizing a profit.
How is ROI Calculated?
The formula for Affiliate ROI is relatively straightforward but crucial to get right:
ROI = ((Total Revenue – Total Cost) / Total Cost) * 100
Practical Example
Imagine you run a Facebook Ads campaign for a software affiliate program:
- Ad Spend: $1,000
- Landing Page Hosting/Tools: $50
- Sales Generated: 50
- Commission per Sale: $30
Your Total Revenue would be $1,500 (50 * $30). Your Total Cost is $1,050. This leaves you with a Net Profit of $450 and an ROI of 42.8%.
Key Terms to Track
- CPA (Cost Per Acquisition): This tells you exactly how much you paid to get one single customer. If your CPA is higher than your commission, you are losing money.
- EPC (Earnings Per Click): While not in this calculator, EPC helps you understand the value of every visitor you send to a merchant.
- Break-Even Point: The moment your revenue equals your total expenses.