# How to calculate ROI

Hi,

How to calculate Roi of a Search engine Optimization Campaigns. is there any Free tool available to calculate ROI ?

At the basic level ROI is the sum total of your costs divided by your corresponding revenue and while I’m sure someone has put together a template, there’s nothing more needed than a calculator.

\$5,000 in costs vs \$105000 in incremental sales from organic search = 100% ROI. This is a breakeven gross campaign and negative unless your margins at 100%.

\$5,000 in costs vs \$10,000 in incremental sales from organic search = 200% ROI. Unless your margins are 50%, this is a negative campaign.

etc…

The difficulty of course with something like SEO is that you can’t truly isolate what your efforts have done and what’s happened as a function of other external changes so while you can measure all of organic search generated sales now vs before you were optimizing, you really have to consider what else is at play. For example, people tend to make a few visits to a site in purchasing and organic search is often the “last stop” when they Google you one final time to get to your site to buy. So if you’re doing more with paid media or partnerships or even social, you’ll see your organic results increasing as well… but that’s not a function of SEO.

When you think about ROI it should be about understanding trends within a context. When you run only towards the end metric you risk upsetting what’s actually getting you there that you may not have figured out how to measure.

I am not sure on any free tools apart from a calculator and Google analytics. Do a search on youtube on anayltics and setup goals and paths. It will let you know where your visitors came from and what they did on your site. From there you can work out the sales and ROI.

This is the simple formula for calculating the ROI: ROI = ((Revenue – Cost) / Cost) * 100 .You can set this simple formula in excel sheet too. ROI is the simple formula to compare between money spent and earned. Although, this formula doesn’t take into consideration profit only revenue.

does Roi Calculator exist in Excel 2007 ?

Just set the formula yourself. If you don’t know hoe to set then you can look at Microsoft office site about it.