Sales ROI Calculator

How to use this sales ROI calculator

To calculate your sales ROI, enter your cost of goods sold (COGS), sales expenses, revenue from sales, salaries paid, commissions paid, cost of sales tools, and marketing costs. The tool will instantly calculate your sales ROI with these inputs.

Sales ROI formula

Sales ROI = (Net Profit from Sales – Sales Investment) / Sales Investment × 100

Net Profit from Sales = Revenue from Sales – (COGS + Sales Expenses)

Sales Investment = Salaries Paid + Commissions Paid + Cost of Sales Tools + Marketing Costs

Understanding the sales ROI result

The ideal sales ROI will depend on your industry, product, targets, etc.

• A high sales ROI indicates that your sales efforts are efficient and profitable.
• A low sales ROI indicates that your sales are not very profitable and that you need to optimize costs or pricing strategies. A negative value indicates a loss, meaning you are spending more than you’re earning.

When to calculate sales ROI

• Before deciding the budget for future sales campaigns

• To evaluate the effectiveness of a sales strategy over a specific period

• When assessing the performance of a new sales tool or team member

• After launching a new product or service to gauge profitability

• To determine whether to continue, adjust, or scale current sales activities

How to calculate sales ROI (with example)

Consider that you have the following sales data:

• Cost of Goods Sold (COGS): $10,000

• Sales Expenses: $5,000

• Revenue from Sales: $30,000

• Salaries Paid: $7,000

• Commissions Paid: $2,000

• Cost of Sales Tools: $1,500

• Marketing Costs: $4,500

You can calculate your sales ROI as follows:

Sales ROI = (Net Profit from Sales – Sales Investment) / Sales Investment × 100

Net Profit from Sales = 30,000 – (10,000 + 15,000) = $15,000

Sales Investment = 7,000 + 2,000 + 1,500 + 4,500 = $15,000

Sales ROI = [(15,000 - 15,000)/ 15,000] × 100 = 0%

In this example, the ROI is 0%, meaning that the sales efforts have broken even with no profit or loss.

How to improve your sales ROI

• Streamline sales activities to reduce operational costs and improve conversion rates.
• Ensure your sales representatives are well-trained to close deals more effectively.
• Implement sales automation tools to reduce time spent on repetitive tasks and increase productivity.
• Focus on qualified leads who are more likely to convert into paying customers, reducing wasted efforts on unqualified prospects.
• Ensure your marketing efforts align with your sales strategy to improve lead quality and boost conversions.
• Evaluate and adjust your pricing model to increase revenue without increasing costs.
• Regularly analyze key sales metrics such as conversion rates and sales cycle length to make data-driven decisions.
• Add complementary products or services to upsell and cross-sell, increasing average deal size.