How to use this calculator
- Enter or choose revenue attributed to content.
- Enter or choose gross margin.
- Enter or choose production cost.
- Enter or choose distribution and promotion.
- Enter or choose tools and software.
- The content ROI updates as you type. Use Copy result or Share to keep it.
Method
Gross profit = Revenue × Margin; ROI = (Gross profit − Total cost) ÷ Total cost × 100; Break-even revenue = Total cost ÷ Margin
- Total cost
- production + distribution + tools (the denominator)
- Margin
- gross margin as a decimal
Worked example
- Gross profit = 50,000 × 0.40 = $20,000; cost = 8,000 + 3,000 + 1,000 = $12,000.
- ROI = (20,000 − 12,000) ÷ 12,000 × 100 ≈ 66.67%.
- Break-even revenue = 12,000 ÷ 0.40 = $30,000.
$50,000 of attributed revenue at a 40% margin returns 66.67% on $12,000 of content cost.
What the result means
Content keeps earning after it is paid for, so measure over a long enough window (often 12 months or more) and report the window with the ROI.
Assumptions and limits
- Attributed revenue is credited to content under one consistent attribution model.
- Attribution for content is uncertain: it often assists conversions that other channels close.
Questions
Why use gross profit rather than revenue?
Revenue-based ROI ignores the cost of what you sold and overstates the return.