Enter the total number of engagements, cost per engagement, and conversion rate into the calculator to determine the Instagram revenue. This calculator can also evaluate any of the variables given the others are known.
Instagram Revenue Formula
The following formula is used to calculate the Instagram revenue.
R = (E * C * CR) / 100
Variables:
- R is the total revenue ($)
- E is the total number of engagements (likes, comments, shares, etc.)
- C is the cost per engagement ($)
- CR is the conversion rate (percentage)
To calculate the Instagram revenue, multiply the total number of engagements by the cost per engagement, then multiply the result by the conversion rate. Divide the final result by 100 to get the total revenue.
What is an Instagram Revenue?
Instagram revenue refers to the income generated by Instagram, primarily through advertising. Businesses pay Instagram to display their ads to targeted users based on various factors like interests, demographics, and behaviors. Instagram also earns revenue through sponsored posts and partnerships with influencers. Additionally, Instagram’s shopping feature allows businesses to sell products directly on the platform, contributing to its revenue.
How to Calculate Instagram Revenue?
The following steps outline how to calculate the Instagram Revenue.
- First, determine the total number of engagements (E).
- Next, determine the cost per engagement (C).
- Next, determine the conversion rate (CR).
- Next, gather the formula from above = R = (E * C * CR) / 100.
- Finally, calculate the Instagram Revenue (R).
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
total number of engagements (E) = 500
cost per engagement (C) = 0.50
conversion rate (CR) = 2%
