# Loyalty program ROI calculator

> Free loyalty program ROI calculator. See the extra repeat customers, revenue and profit a loyalty program brings if it lifts your repeat purchase rate.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/loyalty-program-roi-calculator

Before you launch a loyalty program, see what a higher repeat rate is worth in extra customers, revenue and profit over a year.

## What it calculates

A loyalty program pays off by getting more customers to come back. The calculator takes your current repeat rate and the rate you expect with the program, and turns the difference into extra repeat customers, revenue and profit. Compare the profit with what the program costs to run, including the rewards you give.

## Formula

```
Extra repeat customers = Customers × (rate with program − rate now)
Extra revenue per month = Extra customers × AOV
Extra revenue per year = Extra customers × AOV × repeat orders per year
Extra profit per year = Extra revenue per year × margin
```

## Worked example

Inputs:
- Customers per month: 1000
- Average order value: USD 60
- Repeat rate now: 20%
- Repeat rate with the program: 25%
- Repeat orders per year: 3
- Margin: 45%

Results:
- Extra profit per year: USD 4,050
- Extra repeat customers: 50
- Extra revenue per month: USD 3,000
- Extra revenue per year: USD 9,000

## What changes the result

Repeat rate with the program at five values; every other input as in the example.

| Repeat rate with the program | Extra profit per year | Extra repeat customers |
| --- | --- | --- |
| 22.5% | USD 2,025 | 25 |
| 25% (example) | USD 4,050 | 50 |
| 30% | USD 8,100 | 100 |
| 35% | USD 12,150 | 150 |
| 40% | USD 16,200 | 200 |

## How to read the result

The profit here is before program costs. Subtract the platform fee and the value of rewards to get the real return.
Be careful with the expected rate: start with a small lift and measure it.

## Questions

**How do I measure loyalty program ROI?**
(Extra profit from repeat orders − program cost) ÷ program cost, where program cost includes the platform and the rewards.

**What repeat rate should I expect from a loyalty program?**
Measure it. Run the program for a group of customers and compare their repeat rate with customers outside it.

**Is a loyalty program worth it for a small store?**
It is when you have enough repeat buyers for a small lift to cover the cost. Use your real numbers in the calculator.

**Do you store what I enter?**
No. The calculation runs in your browser and nothing is sent to Analify.

## Use your real numbers

Analify reads customers, repeat orders and order values from Shopify, so you can measure your real repeat rate before and after a program. Analify reads 5 of these 6 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/loyalty-program-roi-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools