Referral Program ROI Calculator
Estimate the customers, revenue and profit a referral program can create, then compare that value with rewards, incentives, platform costs and program administration.
Enter the referral program assumptions
Model the full referral funnel
From active customers to referred customers
| Stage | Volume | Conversion from prior stage | Economic note |
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Referred-customer value over time
| Month | Active referred customers | Revenue | Customer contribution | Cumulative contribution | Cumulative net after program cost |
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ROI at different advocate participation rates
| Participation rate | Advocates | Referred customers | Program cost | Net contribution | ROI |
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Program economics at different referral conversion rates
| Referral conversion | Referred customers | Referral CAC | Net contribution | ROI | Avoided paid CAC |
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Program economics at different referrer rewards
| Referrer reward | Reward payout | Total program cost | Referral CAC | Net contribution | ROI |
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Referral ROI depends on incremental customers
This calculator assumes the referred customers modeled would not have been acquired anyway without the referral program. Duplicate, self-referral, fraud and attribution controls should be reflected in the invalid-referral rate and program costs. Avoided paid CAC is optional because a business may not replace every referred acquisition with paid marketing. The model does not automatically include taxes, channel cannibalization, referral fraud losses, long-term brand effects, customer lifetime differences beyond the entered churn assumptions or legal restrictions on referral incentives.