This interactive marketing ROI calculator is a tool that enables you to analyze the whole process of local internet marketing and sales, from ad views to actual sales and return on investment. We use it ourselves to estimate returns for our marketing efforts for our clients.

Specifically designed for local businesses like home service providers, health and wellness establishments, and restaurants, this tool can be used to simulate your marketing funnel and assess whether your local business will see a profit from its online marketing efforts.

Calculating Your Marketing Funnel

Even if you craft the best ad on the web, it’s a reality that many people might not take a second glance, or they may not see it at all due to ad blockers. Only some will click on the ad, but that doesn’t guarantee their patronage. Most of them will leave your website and may never return. Some will become potential customers, intrigued by your service or product. The journey isn’t over there though – not all will decide to take the next step and become actual customers.

Our calculator lets you determine the number of people at each stage of the funnel. You’ll need to make a few assumptions:

• Impressions: The number of views of your ad. Every time a site with your ad is loaded, you get one impression.
• CTR (click-through-rate): The percentage of impressions that lead to a click. For example, if your CTR is 5%, that means that 1 of every 20 people who see this ad is intrigued enough to click on it and visit your website.
• Visits: The actual number of visits to your website (generated by impressions). This number will be calculated automatically.
• Visits to leads: The percentage of visits that result in leads (potential customers). For instance, a visits to leads ratio of 10% means that every tenth person who visits your website is interested in your product.
• Leads: The absolute number of leads. This number will be calculated automatically.
• Leads to customers: The percentage of leads that result in someone becoming a customer.
• Customers: The bottom of the marketing funnel – number of people who were so interested in your service or product that they decided to buy it.

Calculating Costs of Local Internet Marketing

Local online advertising doesn’t come free. You probably pay for ads on multiple platforms. If you want your local business to succeed, it’s critical to control your overall cost of client acquisition. Our calculator lets you determine how much you’re paying at each stage of your marketing – per click, per lead, or per customer.

• Cost: Total cost of your online marketing.
• CPM: Cost per thousand impressions.
• CPC: Cost per click, or per visit.
• Cost per lead: The investment you make to get one lead.
• Cost per customer: The total cost of advertising required to get one customer.

Calculating Return on Investment (ROI)

Was investing in local online ads worth it? The third section of our marketing ROI calculator helps you answer that. Simply type in the revenue you made in total on your products or services, and our calculator will help you calculate all of the statistics.

• Revenue: Money you made on your online sales. It’s not equal to the income (net profit) – you don’t have to subtract the costs of setting up the ad.
• ROI: Return on investment, a percentage value that tells you how profitable your business is. If it’s a negative value, it may be time to reconsider your marketing strategy.
• Revenue per click / per lead / per customer: These values are a measure of how profitable your business is compared to others.

You can switch to the advanced mode to calculate your prospective revenue, based on the assumption that each customer may make more than one purchase or request for service.

• Number of orders per customer: The total number of orders that one customer makes for the whole time they patronize your business.
• Customer LTV (Lifetime Value): How much a customer spends in your establishment in total.
• Total revenue: Total gain assuming that each of your customers will return to your establishment multiple times to make the total number of orders as specified above.