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Loyalty program ROI calculator

Updated · By , Product and loyalty at LoyaltyAI

Before paying for any loyalty software, check whether the numbers work for your business. Enter your own figures; every step of the calculation is shown, so you can see exactly where the result comes from.

Quick answer

Loyalty program ROI equals extra gross profit from returning members minus the cost of software and rewards, divided by that cost. Extra profit is members times extra visits per year times average spend times gross margin. This calculator works in dollars, pounds or euros and runs in your browser.

Currency

Estimated extra gross profit per year

$3,680

About 1,673% return on what you spend.

Calculation breakdown
Members150
Extra visits a year300
Extra revenue$6,000
Extra gross profit (65%)$3,900
Minus software and rewards−$220

An estimate based on your assumptions, not a forecast. Nothing you enter is sent anywhere.

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Three worked examples

Worked loyalty ROI examples for a coffee shop, a restaurant and a salon
Coffee shopRestaurantHair salon
Customers per month800600250
Share who join30% (240 members)25% (150 members)50% (125 members)
Extra visits per member a year61.51
Average spend4.503545
Extra revenue6,4807,8755,625
Gross margin70%65%70%
Extra gross profit4,5365,1193,938
Minus software (199 a year)4,3374,9203,739

Amounts in your own currency. Software cost based on LoyaltyAI Avanzado (€199 a year, excl. VAT); reward costs not included. These are illustrations with stated assumptions, not results from real customers.

How to make the estimate more reliable

Use your till data. Count different customers per month from card payments or your booking system rather than guessing from busy days.

Start with low assumptions. If the program only pays off with optimistic numbers, it probably won't. The examples above already show positive results with one or two extra visits a year.

Measure after launch. Once members are earning points or stamps, compare their visits with your own assumptions and adjust. If you want a format to start with, read our coffee shop, restaurant and salon guides, or design a card with the free stamp card maker.

Loyalty ROI calculator FAQs

How do you calculate the ROI of a loyalty program?+

Estimate how many customers join, how many extra visits each member makes in a year and what they spend per visit. Multiply them to get extra revenue, apply your gross margin to get extra profit, then subtract the cost of the software and the rewards. Divide what is left by that cost.

What is a realistic number of extra visits?+

Be conservative. For restaurants and salons, one or two extra visits per member a year is a sensible starting assumption; coffee shops and bakeries, where people come several times a week, can assume more. Use your own data after two or three months instead of any industry average.

Why does the calculator use gross margin instead of revenue?+

Because extra sales are not extra money in your pocket. A free coffee or an extra dinner still costs you ingredients, and comparing software cost with revenue would flatter the result. Applying your gross margin gives a figure you can compare honestly with what the program costs.

Can I use dollars or pounds?+

Yes. Choose dollars, pounds or euros; the calculation is the same and only the symbol changes. LoyaltyAI itself is billed in euros, from €99 to €299 a year for one venue excluding VAT, so convert that into your currency when you enter the software cost.

Is any of my data stored?+

No. The calculator runs entirely in your browser and nothing you enter is sent to us. There is no form to fill in. If you want to test the numbers for real, you can try LoyaltyAI Pro free for 30 days without a card.

Check the numbers with real customers

Run LoyaltyAI Pro for 30 days with no card and see how many customers join and come back. Then decide.

30-day free Pro trial, no card. No app for your customers to download.

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