# Social Selling ROI Calculator

> The exact formula, inputs, and worked example for turning pipeline sourced from social selling into a dollar figure and ROI multiple you can defend in a budget conversation with your CFO.

Free calculator/tool for sales leaders. Topic: [Cold Email, LinkedIn & Social Selling](https://www.peerlab.ai/library/topic/cold-email-linkedin-social-selling/). Published by PeerLab in the [Sales Enablement Resource Library](https://www.peerlab.ai/library/). Source: https://www.peerlab.ai/library/social-selling-roi-calculator/

## How to use it

Fill in the 9 inputs from your own CRM and payroll numbers, run the seven formulas in order, and use the resulting ROI ratio sentence directly in your next budget conversation.

## What's inside

- The 9 inputs you need to gather before you calculate anything
- Step-by-step formulas: labor cost, program cost, pipeline sourced, revenue attributed
- ROI ratio and cost-per-opportunity formulas
- Payback period formula
- A fully worked example with real numbers
- Interpretation bands (what counts as a good ROI multiple)
- A CFO-ready one-line summary sentence template
- Notes on tagging 'sourced' vs 'influenced' correctly in your CRM

## Inputs You Need

| Input | Symbol | Example |
|---|---|---|
| Reps actively social selling | R | 8 |
| Avg. hours/week per rep on social selling | H | 3 |
| Fully loaded hourly cost per rep | C | $45 |
| Tool/license cost per month (Sales Nav, extensions, advocacy tool) | T | $600 |
| Training/enablement cost, amortized per month | E | $250 |
| Opportunities sourced or influenced from social this period | O | 24 |
| Average deal size | D | $18,000 |
| Win rate on social-sourced/influenced opportunities | W | 28% |
| Months in the measurement period | M | 3 |

## The Formulas

**1. Monthly labor cost**
`Monthly labor cost = R × H × C × 4.33`
= 8 × 3 × 45 × 4.33 = **$4,676/month**

**2. Total program cost for the period**
`Total cost = (Monthly labor cost × M) + (T × M) + (E × M)`
= (4,676×3) + (600×3) + (250×3) = 14,028 + 1,800 + 750 = **$16,578**

**3. Pipeline sourced**
`Pipeline sourced = O × D`
= 24 × 18,000 = **$432,000**

**4. Revenue attributed**
`Revenue attributed = Pipeline sourced × W`
= 432,000 × 0.28 = **$120,960**

**5. ROI ratio**
`ROI ratio = Revenue attributed / Total program cost`
= 120,960 / 16,578 ≈ **7.3x**

**6. Cost per opportunity**
`Cost per opp = Total program cost / O`
= 16,578 / 24 ≈ **$691**

**7. Payback period (months)**
`Payback = Total program cost / (Revenue attributed / M)`
= 16,578 / (120,960/3) = 16,578 / 40,320 ≈ **0.41 months**
*(Note: revenue realization typically lags the quarter it was sourced in: read payback against when deals actually close, not when they were sourced.)*

## Interpretation Bands

| ROI ratio | Read |
|---|---|
| Below 1.0x | Cost exceeds attributed revenue: diagnose before asking for more budget (low adoption, wrong accounts, or too short a measurement window) |
| 1.0x, 3.0x | Break-even to early positive, normal in the first 1–2 quarters of a new program |
| 3.0x, 6.0x | Solid, defensible return, worth a steady-state budget line |
| Above 6.0x | Strong: worth investing further (more reps, more tooling, dedicated content support) |

## CFO-Ready Summary Sentence

> "Our social selling program cost **$[Total program cost]** this [period] and sourced **$[Pipeline sourced]** in pipeline at a **[W]%** win rate, generating **$[Revenue attributed]** in attributed revenue: a **[ROI ratio]x** return, or **$[Cost per opportunity]** per opportunity sourced."

Filled in from the example above:

> "Our social selling program cost $16,578 this quarter and sourced $432,000 in pipeline at a 28% win rate, generating $120,960 in attributed revenue, a 7.3x return, or $691 per opportunity sourced."

## Getting the Inputs Right

- **Tag social-sourced/influenced opportunities in the CRM at creation** (a simple "Source: Social" field), don't try to reconstruct this after the fact.
- **Sourced** = first meaningful engagement was social. **Influenced** = social engagement happened somewhere in the cycle but wasn't the origin. Track both separately if you can, and be explicit about which one you're reporting.
- Use a trailing win rate specific to social-sourced deals once you have ~15–20 closed opportunities to base it on; before that, use your overall team win rate as a placeholder and flag it as an estimate.