Calculating ROI from Social Media Campaigns: A Step-by-Step Guide
Social media can be one of the most powerful channels in your marketing mix—but it’s also one of the hardest to measure. Likes and shares don’t pay the bills. What really matters is whether your campaigns are generating revenue, subscriptions, and long-term customer value.
Calculating ROI from social media campaigns helps you move beyond vanity metrics and prove the true impact of your efforts. In this guide, you’ll learn the exact formula to measure ROI, see real-world examples, and discover benchmarks that show how your results stack up. You’ll also get access to tools like the Social Media Campaign Value Calculator to run the numbers for your own campaigns.
Why Measuring ROI from Social Media Matters
Social media eats up budget and team resources, but without a clear way to connect campaigns to revenue, it’s hard to justify the spend. For SaaS and digital-first companies, ROI is the ultimate proof point—it shows whether your campaigns drive sign-ups, subscriptions, and long-term customer value rather than just likes or impressions.
👉 If you want a quick answer, you can plug your own numbers into the Social Media Campaign Value Calculator and see results instantly.
What Is Social Media ROI?
At its simplest, ROI measures the return you earn compared to what you spent. For social media, the formula is:
ROI (%) = [(Revenue from social campaigns – Cost of campaigns) ÷ Cost of campaigns] × 100
- Revenue = trial sign-ups, purchases, upgrades, or renewals from social campaigns
- Costs = ad spend, creative production, staff time, and tools
Unlike traditional retail, SaaS ROI often includes monthly recurring revenue (MRR), lifetime value (LTV), and churn reduction.
Example ROI Calculation
Say you spend $8,000 on a Facebook and LinkedIn ad campaign. It generates:
- 300 free trial sign-ups
- 60 paid conversions
- Each customer worth $400 in annual revenue
- Revenue = 60 × $400 = $24,000
- Cost = $8,000
- ROI = [(24,000 – 8,000) ÷ 8,000] × 100 = 200%
That means for every $1 spent, you earned $2 in return.
Step-by-Step: How to Calculate ROI from Social Campaigns
1. Calculate All Costs
Include ad spend, software fees, agency or in-house salaries, and creative production. Many companies forget labor costs, which makes ROI look inflated.
2. Attribute Revenue Properly
- Use UTM tracking for campaign links
- Integrate your CRM with analytics tools (HubSpot, Salesforce, GA4)
- Measure assisted conversions where social was the first touch but not the last click
3. Apply the Formula
Once you know costs and attributed revenue, apply the ROI formula.
4. Forecast ROI Over Time
Social campaigns often show results after weeks, not days. Forecasting ROI helps you plan budgets realistically.
SaaS Benchmarks for Social Media ROI
While ROI differs across industries, SaaS benchmarks in 2025 look like this:
| Platform | Typical ROI | Notes |
|---|---|---|
| 150–300% | Strong for B2B SaaS lead gen | |
| 100–200% | Effective for retargeting | |
| Twitter/X | 50–120% | Good for engagement, lower direct ROI |
| TikTok | 80–180% | Works for awareness, less for conversions |
👉 Want to compare costs across campaigns? Try the Marketing Campaign Cost Calculator.
Common Mistakes When Measuring ROI
- Tracking vanity metrics only (followers, likes, reach)
- Excluding hidden costs like staff time or tools
- Short measurement windows—some SaaS deals close months after first touch
- Ignoring churn impact—if customers from social have shorter LTV, ROI drops
How to Improve ROI from Social Media
- Retarget engaged leads with upgrade or demo offers.
- Segment by audience type—cold leads vs retargeted prospects.
- Test creative variations to lower CPC and boost conversions.
- Integrate with other channels—email sequences and SEO content amplify ROI.
To see how customer loyalty influences ROI, check out the Customer Loyalty Value Calculator.
FAQs About Social Media ROI
What’s a good ROI from social media campaigns?
Anything above 100% (doubling your spend) is strong. SaaS companies often aim for 200–300%.
How do you measure ROI for organic vs paid social?
Paid is easier—track spend vs conversions. For organic, attribute traffic and sign-ups using UTMs and analytics.
Should brand awareness be included in ROI?
Yes, but it’s indirect. Awareness lowers CAC and improves conversions across other channels.
How long does it take to see ROI?
Paid campaigns show impact in weeks. Organic social ROI often takes months of consistent posting.