Model cost, lift, and payout mix for employee recognition, wellness/health, market research, channel SPIFFs, and consumer promotions. Edit assumptions, see the math, and export a shareable report.
Visible formulas and methodology with full transparency
References from non-cash rewards trends and industry research
PDF & CSV exports available when calculator is embedded
Authored and reviewed by ADR analysts with last reviewed date
Built for currencies, languages, and delivery options worldwide
Planning tool; not legal, tax, or financial advice.
Select your audience, adjust assumptions, compare scenarios to see ROI and payback.
The ROI formula is straightforward: ROI = (Incremental Profit – Total Program Cost) ÷ Total Program Cost × 100%. Here are quick examples by audience:
15% retention improvement × $50,000 replacement cost = $7,500 value per retained employee
8% medical cost reduction × $12,000 annual premium = $960 savings per engaged participant
$2.50 CPC savings × 1,000 responses = $2,500 research cost avoidance vs. paid ads
25% sales lift × $500 average margin = $125 incremental profit per activated partner
12% conversion improvement × $100 average order = $12 incremental revenue per participant
Budget planning varies significantly by audience and program goals. Employee recognition programs typically range from $50-$500 per participant annually, driven by eligibility criteria and celebration frequency. Wellness programs often budget $100-$300 per employee, with higher engagement driving better health outcomes and cost avoidance. Market research incentives range from $5-$50 per response, depending on survey length and target demographics. Channel SPIFF programs vary from $25-$250 per partner, scaled by sales targets and margin protection needs. Consumer promotions typically allocate $10-$100 per participant, balancing acquisition costs with lifetime value expectations.
Key drivers include eligibility scope (all employees vs. top performers), engagement rates (20-80% typical range), breakage assumptions (5-25% depending on reward type), and payout velocity (immediate vs. deferred recognition). The calculator allows you to model these variables and see their impact on total program investment and ROI projections.
Breakage refers to the portion of the issued reward value that participants never redeem. This is a critical factor in program economics, as unredeemed rewards reduce your actual payout costs.
Understanding breakage helps you budget more accurately and optimize reward mix. The calculator incorporates industry-standard breakage assumptions while allowing you to adjust based on your program design and historical data. Remember that while breakage reduces costs, it should be balanced against program parameters, participant satisfaction and program effectiveness.
Each reward type offers distinct ROI advantages. Gift cards provide the fastest deployment with minimal operational overhead, making them ideal for quick-launch programs. Prepaid cards offer maximum flexibility and global reach but require KYC compliance and higher administrative costs. Merchandise can create memorable experiences and higher perceived value, though with increased logistics complexity and breakage variability. The calculator helps you model these trade-offs across different audience types and program scales.
SPIFFs (Sales Performance Incentive Fund Programs) and rebates serve different strategic purposes with distinct ROI profiles:
ROI considerations: SPIFFs typically show faster payback (30-90 days) but require more program management; rebates offer lower administrative costs but longer ROI realization (6-12 months). Compliance factors: SPIFFs need careful tracking and tax reporting; rebates often integrate with existing accounting processes. The calculator models both approaches, helping you compare immediate impact versus long-term relationship building based on your specific channel dynamics and business objectives.
This calculator models the complete economics of incentive programs across five key audiences. It calculates total program costs including reward payouts, platform fees, fulfillment expenses, and administrative overhead. Incremental value is estimated using audience-specific metrics: retention savings for employee programs, medical cost avoidance for wellness initiatives, research cost savings for market studies, incremental margin for channel SPIFFs, and conversion lift for consumer promotions. The ROI calculation compares incremental profit against total investment, while payback period shows when cumulative benefits exceed program costs.
Default assumptions are informed by industry research from the Incentive Research Foundation (IRF), which provides authoritative data on reward preferences, engagement rates, and program effectiveness across different use cases. IRF studies consistently show that well-designed incentive programs deliver measurable ROI, with non-cash rewards often outperforming cash equivalents in driving sustained behavior change. Additional benchmarks draw from ADR’s experience managing programs across diverse industries and global markets.
The methodology emphasizes transparency and editability—all formulas are visible, assumptions can be modified, and sensitivity analysis helps identify the most impactful variables for your specific situation. This approach follows the Total Economic Impact (TEI) framework principles, providing decision-makers with clear, defensible business cases for incentive program investments.
ROI = (Incremental Profit – Total Program Cost) ÷ Total Program Cost × 100%. Incremental Profit includes audience-specific value (e.g., avoided turnover costs, medical cost avoidance, research CPC savings, incremental sales margin) minus all program costs including rewards, fees, and administration.
Defaults draw from industry research including the Incentive Research Foundation (IRF) studies on reward preferences and program effectiveness, combined with ADR’s benchmarks from managing diverse client programs. All inputs remain fully editable so you can customize based on your specific situation and historical data.
Breakage is the portion of issued reward value that participants never redeem. Typical rates range from 5-25% depending on reward type and audience. Gift cards average 5-15% breakage, prepaid cards 5-15%, and merchandise 15-25%. This reduces your actual payout costs and improves program ROI, but should be balanced against participant satisfaction.
Yes—when the calculator is embedded, you’ll be able to download both PDF reports (formatted for executive presentation) and CSV data files (for further analysis or integration with your planning tools). Results include all assumptions, calculations, and scenario comparisons.
No. This tool provides planning guidance and modeling capabilities to help evaluate incentive program investments. For legal compliance, tax implications, or financial advice specific to your situation, please consult qualified professional advisors. Program design should also consider applicable regulations in your jurisdictions.
Ready to dive deeper into incentive program strategy and implementation? Explore these additional resources:
Real-world examples of successful incentive programs
Learn about ADR’s commitment to data protection
Explore extensive reward options with global delivery
Have questions? Speak with an Incentives Specialist
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