Investing in any kind of business venture nowadays has become a bit risky than it had been during the last decade. In the past, a good and well-invested business only needed a good capital plus a creative mind to get it going. Problems back then were less complicated and easier to solve. Nowadays, finding the cash as a starting capital is already a huge headache especially for someone who is only starting to gain ground. You will also have to worry about the huge taxes and tremendous paper works before your business gets running. And once your business is operational and you’ve invested a huge amount of money for it, whether it’s a coffee shop, a small restaurant or a simple stall inside a big mall in an urbanized city, you would want to know when you can get back the money that you’ve invested, return of investment (ROI) in other words. That’s where using a marketing ROI calculator comes into the picture.
To begin with, the basic function of a marketing ROI calculator is to calculate when and how much will be the return of investment of a businessman will earn in a specified period of time. This calculator isn’t the same as the one you used during your college days to solve the head-banging equations in your Calculus class. You see, this is a special type of calculator which uses a very specific formula which is invented for getting the ROI. The simplest formula that is commonly used is this:
(Sales growth – marketing cost) / Marketing cost = is your return of investment.
There are other formulas that experts use to determine their return of investment for their business. Another variant of this complex formula is this:
(Sales growth – marketing cost) / Marketing cost – average organic cost = is your return of investment.
Using a marketing ROI calculator may be a complex thing especially if you are a newbie in business management. However, it’s really important that you use and know how to fully use this specific kind of calculator and also understand the formula being employed. When this calculator is properly used, you can determine your ROI in a snap.