Research ROI calculator
Estimate the return on a research study from the value of the decision it informs, the share of that value it protects and its cost.
Research ROI compares what a study protects with what it costs: the value of the decision at stake times the share of it the research protects, minus the cost, divided by the cost. With $500,000 at stake, 10 percent protected and a $15,000 study, the return is 233 percent.
How to use it
Value the decision
Enter what rides on the decision the research informs: the revenue a launch is forecast to bring, the budget a campaign will spend or the cost of building a feature.
Estimate the share protected
Enter the share of that value the research could save or add, for example by stopping a weak launch or sharpening a message. Agree the figure with the decision owner before the study, so it is not tuned to the answer.
Enter the full cost
Include fees, incentives, recruitment and your team's time, so the return is not flattered by costs left out. The cost per insight calculator adds these up.
Read the return
The result is the return as a percentage of the cost. Above zero, the study is expected to pay for itself; the table shows how the return moves with cost and value.
The formula
ROI = (V × u − C) ÷ C, as a percentage, where V is the value of the decision at stake, u the share of it the research protects and C the cost of the research.
A worked example
Example inputs, not a benchmark.
- Value of the decision at stake
- $500,000
- Share of that value the research protects
- 10%
- Cost of the research
- $15,000
- Return on the research
- 233%
Common values
| Cost of the research | $25,000 | $100,000 | $500,000 |
|---|---|---|---|
| $5,000 | 400% | 1,900% | 9,900% |
| $15,000 | 67% | 567% | 3,233% |
| $50,000 | -50% | 100% | 900% |
What the numbers show
- The share protected moves the result far more than small changes in cost, so it is the input to discuss and write down.
- A study that informs a large decision can justify a much larger budget than one that informs a small decision, at the same share protected.
- A lower-cost study raises the return on any decision, which is why fast, focused research often pays back on decisions too small for a large project.
- Running the numbers before commissioning a study sizes the budget to the decision rather than to habit.
What the number leaves out
- The share protected is an estimate, and the result is only as good as that estimate. Treat the output as a way to structure a conversation about value.
- It counts one decision. Findings often inform several decisions and are reused later, which the calculation leaves out.
- It ignores timing. A study that delays a launch has a cost the formula misses, and one that speeds a decision has a benefit it misses.
- It assumes the team acts on the findings. Research nobody uses returns nothing, whatever the calculation says.
Related
More free research tools
- Cost per insight calculator Work out the full cost of the study to enter here.
- Time to insight calculator Check the study will report before the decision is made.
- Sample size calculator Size a survey for the precision the decision needs.
- Incentive calculator Budget what participants are paid.