How to Calculate the ROI of Online Community?

Community ROI can be calculated using the formula: ROI = (Revenue from Community) - (Cost of Community) ÷ Cost of Community x 100%.

Here's how to do it practically:

1. Revenue from Community: Add up all income directly generated by your community. This includes membership fees, sponsorships, direct sales influenced by community interactions, referrals or any leads converted because of the community. Read: Make money from community

2. Cost of Community: Calculate all the expenses involved in running your community. Common costs include community platform fees, content creation expenses, moderator salaries, community management software, hosting / bandwidth costs etc.

Simply subtract total costs from total revenue, divide this by total costs and multiply by 100% to get a clear percentage.

Practical Example

Suppose your community generates monthly revenues of $10,000 through membership fees, sponsorship deals, and affiliate sales. Your monthly expenses for platform fees, moderator salary, content creation, and related costs are $2,000.

ROI (%) = (Revenue - Cost) / Cost × 100%

Example Calculation:

Revenue from Community = $10,000  
Cost of Community = $2,000  

ROI (%) = ($10,000 - $2,000) / $2,000 × 100%  
        = $8,000 / $2,000 × 100%  
        = 4 × 100%  
        = 400%

I hope this helps.

Thanks Jennifer for asking — and Kaustubh for breaking it down so clearly. 🙌 I’d just add: beyond numbers, track non-monetary wins too — like product feedback, support cost savings, and brand love. They’re harder to measure, but often the real ROI of community.