Instagram Ads ROI Calculator

How to use this Instagram Ads ROI calculator

First, select whether or not you have already completed your ad campaign

• For completed campaigns, enter the total ad cost, revenue generated from the campaign, and any additional costs (like agency fees).

• For future campaigns, provide the target revenue, average revenue per conversion, expected conversion rate, and estimated cost-per-click (CPC).

Once you input the necessary details, the tool will immediately calculate your current or projected ROI, helping you evaluate your campaign performance.

Instagram Ads ROI formula

Instagram Ads ROI = [(Total Ad Revenue - Total Ad Cost) / Total Ad Cost] × 10*

If the campaign is completed:

Total Ad Cost = Instagram Ad Cost + Additional Costs (e.g., Agency Fees*

For planned campaigns:

Required conversions = Target Revenue / Average Revenue per Conversion

Required clicks = (Required conversions / Expected Conversion Rate) × 100

Total Ad Cost = Required Clicks × Expected CPC

Understanding the Instagram Ads ROI result

The ideal Instagram Ads ROI will fluctuate depending on your goals, industry, competition, scale of campaign etc. In general,

• A high Instagram Ads ROI shows that your campaign is generating more revenue compared to the cost, indicating strong performance and efficiency.

• A low Instagram Ads ROI suggests that your campaign needs optimization, such as better targeting, creative adjustments, or budget recalibration. If your ROI is negative, the campaign is running at a loss, signaling the need for urgent improvements.

When to calculate Instagram Ads ROI

• After completing a campaign to measure profitability and success.

• During campaign planning to, forecast the expected return on investment.

• To compare various campaigns, ad creatives, or audience segments.

• When deciding whether to scale up or adjust ongoing campaigns for better performance.

How to calculate Instagram Ads ROI (with example)

Let’s say you ran an Instagram ad campaign with a total ad cost of $1,500, your revenue from the campaign was $4,000, and you spent an additional $300 in agency fees. Your Instagram Ads ROI can be calculated as follows:

Instagram Ads ROI = [(Total Ad Revenue - Total Ad Cost) / Total Ad Cost] × 100

Total Ad Cost = $1,500 + $300 = $1,800

Instagram Ads ROI = [($4,000 - $1,800) / $1,800] × 100 = 122%

Your Instagram ad campaign generated a 122% ROI, showing that your revenue exceeded the cost by 1.22 times.

In a planned campaign, if your target revenue is $8,000, your average revenue per conversion is $400, your conversion rate is 4%, and your expected CPC is $1.50:

Instagram Ads ROI = [(Total Ad Revenue - Total Ad Cost) / Total Ad Cost] × 100

Required conversions = $8,000 / $400 = 20

Required clicks = (20 / 4) × 100 = 500 clicks

Total Ad Cost = 500 × $1.50 = $750

Instagram Ads ROI = [($8,000 - $750) / $750] × 100 = 967%

Based on these projections, this high ROI of 967 % suggests that your Instagram ad campaign would be highly profitable.

How to improve your Instagram Ads ROI

• Use Instagram’s targeting features to reach users most likely to convert.

• Ensure your ad visuals and copy are compelling and relevant to your audience.

• Experiment with Stories, carousels, and video ads to see which performs best.

• Adjust your bids to optimize cost without sacrificing ad delivery.

• Retarget users who’ve shown interest in your brand but haven’t yet converted.

• Use analytics to make data-driven adjustments in real time, optimizing for higher returns