How to Calculate ROI
Fast ROI walkthrough with a worked example — plug in your numbers to estimate impact.
Quick formula: ROI = (Revenue − Spend) / Spend — Revenue = bookings × close rate × deal value.
Tip: Use consistent definitions (booking, qualified lead, kept appointment) across your calculations to avoid mismatch.
What you'll learn
How to convert bookings into revenue, calculate spend (platform + telco + numbers), and compute ROI and payback time with a minimal spreadsheet.
Key inputs
- Monthly spend (platform + usage + numbers)
- Leads dialed per month
- Contact rate (%) and booking rate (%)
- Average deal value and close rate (%)
Worked example
- Leads: 3,000 per month
- Contact rate: 90% → contacted = 2,700
- Booking rate: 35% → bookings = 945
- Deal value: $1,500; close rate: 30% → revenue = 945 × 0.3 × 1500 = $425,250
- Monthly spend: platform $699 + usage $4,000 = $4,699
- ROI = (425,250 − 4,699) / 4,699 ≈ 89x (~8,942%)
Tip: Segment results by cohort (list age, source) to avoid overstating ROI from a small high-performing list.
Estimate templates
Copy these steps into a spreadsheet: leads × contact% × booking% × close% × deal value = revenue.
Common pitfalls
- Using gross bookings without factoring show rates and cancellations.
- Not counting number rental/telco pass-throughs in spend.
- Mixing pilot performance with full-scale expectations.
Next steps
Use the pricing estimator to model spend, then re-run the formula above with your numbers.
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