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screenshot of the promotions ROI calculator from Merchant Sheets
screenshot of the promotions ROI calculator from Merchant Sheets
screenshot of the promotions ROI calculator from Merchant Sheets
screenshot of the promotions ROI calculator from Merchant Sheets
screenshot of the promotions ROI calculator from Merchant Sheets
screenshot of the promotions ROI calculator from Merchant Sheets

Promo & Discount ROI Calculator

$49

The Promo / Discount ROI Calculator measures what a promotion actually earned, not what it sold. It separates baseline orders from promo orders, nets incremental gross profit against ad spend and fulfillment cost, and ranks every promo by ROI and tier. The Calculator tab also solves for the lift you need to break even before you run a new promo.

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How it works

The core idea: promo revenue is vanity, promo contribution is sanity. Everything here measures the delta between what happened and what would have happened anyway.

  1. Inputs: Business constants: blended AOV, gross margin, payment fee, and the minimum ROI for a GO recommendation
  2. Promos: Your promo master, with baseline (pre-promo) and actual (promo) inputs for each historical promo
  3. Promo Log: Daily orders, revenue, ad spend, and new customers per promo, feeding the trend chart
  4. Calculator: Plan a new promo. Inputs project ROI and return the breakeven lift multiplier you need to hit
  5. Scorecard: The catalog table: incremental revenue, contribution, ROI, ROAS, tier, and recommended action per promo
  6. Promo Dashboard: Pick any promo for a single-promo P&L breakdown and daily trend
  7. Dashboard: The portfolio view: total incremental contribution, best and worst promos, and performance by type

Steps to use it

  1. Set blended AOV, gross margin, payment fee, and minimum ROI on Inputs
  2. Log each historical promo on Promos: type, discount, dates, baseline and actual daily orders and AOV, ad spend lift, new customers
  3. Paste daily activity per promo into Promo Log for the trend chart
  4. Use Calculator to model a planned promo and see projected ROI and breakeven lift
  5. Review Scorecard for per-promo incremental contribution, ROI, and tier
  6. Open Promo Dashboard for any single promo, then Dashboard for the portfolio view

Tiers run on ROI and net contribution: tier A at 50% ROI or above with positive contribution, repeat it; tier B between 25% and 50%, maintain cadence; tier C between 0% and 25%, pull a lever before repeating; tier D negative contribution, stop running it.