How can you measure the ROI of your MVP?

2 Estimate your MVP costs

The next step is to estimate how much your MVP will cost you. This includes both the direct and indirect costs of building, launching, and maintaining your MVP. Direct costs are the expenses that are directly related to your MVP, such as development, design, hosting, marketing, and customer support. Indirect costs are the expenses that are not directly related to your MVP, but still affect your business, such as opportunity costs, overheads, and risks. You should try to minimize your costs as much as possible, without compromising the quality and functionality of your MVP.

3 Calculate your MVP revenue

The third step is to calculate how much revenue your MVP will generate for you. This depends on your business model, pricing strategy, and customer behavior. You should have a realistic and data-driven estimate of how many customers you will acquire, retain, and monetize with your MVP. You should also consider the lifetime value (LTV) of your customers, which is the total amount of revenue you expect to earn from a customer over their relationship with your product. You should aim to maximize your revenue as much as possible, without sacrificing the value and satisfaction of your customers.

4 Compare your MVP costs and revenue

The fourth step is to compare your costs and revenue and determine the ROI of your MVP. The simplest way to do this is to use the formula: ROI = (revenue - costs) / costs. This will give you a percentage that indicates how much profit you make for every dollar you spend on your MVP. For example, if your revenue is $10,000 and your costs are $5,000, your ROI is 100%. This means you double your money with your MVP. The higher your ROI, the better your MVP performance.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?