Enter the increase in sales generated from design ($) and the total spent on design ($) into the Return on Design Calculator. The calculator will evaluate and display the Return on Design. 

Return on Design Formula

The following formula is used to calculate the Return on Design. 

ROD = +S / TSD * 100
  • Where ROD is the Return on Design (%)
  • +S is the increase in sales generated from design ($) 
  • TSD is the total spent on design ($) 

How to Calculate Return on Design?

The following example problems outline how to calculate Return on Design.

Example Problem #1:

  1. First, determine the increase in sales generated from design ($).
    • The increase in sales generated from design ($) is given as: 325.
  2. Next, determine the total spent on design ($).
    • The total spent on design ($) is provided as: 780.
  3. Finally, calculate the Return on Design using the equation above: 

ROD = +S / TSD * 100

The values given above are inserted into the equation below and the solution is calculated:

ROD = 325 / 780 * 100 = 41.67 (%)

FAQ

What factors can affect the Return on Design (ROD)?
Several factors can influence the Return on Design, including the effectiveness of the design strategy, market conditions, the quality of execution, and how well the design aligns with consumer preferences. Additionally, the initial investment in design and ongoing maintenance costs can also impact the overall return.

How can businesses improve their Return on Design?
Businesses can improve their Return on Design by focusing on user-centered design principles, conducting thorough market research to align design efforts with consumer needs, optimizing the design process to reduce costs, and continuously evaluating and iterating on design outcomes to maximize effectiveness and efficiency.

Is Return on Design applicable only to product design?
No, Return on Design can be applied to various aspects of business, including product design, service design, user experience (UX) design, and even branding and marketing efforts. Any area where design plays a crucial role in adding value to the business or enhancing customer satisfaction can benefit from analyzing the Return on Design.