Loyalty Program Simulator

Estimate the revenue, profit, and break-even point of a loyalty program before launching it.

Business type

Business information

Average order value

€

Daily transactions

Days open per week

Gross margin percentage

Your average gross margin after product or service cost.

Customer participation

Customer enrollment rate

Share of customers expected to join the loyalty program.

Active loyalty member rate

Share of enrolled members expected to actively use the program.

Expected loyalty impact

Choose a starting estimate for how much active loyalty members may increase their spending. You can edit the percentage below.

Active member spend increase

Applied only to enrolled and active member revenue.

Rewards

Points needed for a reward

Assuming 1 point = €1 spent. Example: 100 means one reward after €100 in eligible loyalty spend.

Reward value to customer

€

Reward cost to merchant

€

Estimated automatically from the reward value and gross margin.

Program costs

How we calculate this

Monthly transactions = daily transactions × days open per week × 4.33.
Monthly baseline revenue = monthly transactions × average order value.
Eligible loyalty revenue = baseline revenue × enrollment rate × active member rate.
Incremental revenue = eligible loyalty revenue × loyalty lift.
Incremental gross profit = incremental revenue × gross margin.
Estimated rewards redeemed = eligible loyalty revenue ÷ points needed for a reward. The calculator assumes 1 point = €1 spent and that earned rewards are redeemed.
Monthly reward cost = rewards redeemed × reward cost to merchant.
Net monthly profit = incremental gross profit - software and reward costs.
ROI = net monthly profit ÷ total monthly program cost.

The calculator estimates incremental impact, not guaranteed revenue.
Loyalty lift is applied only to enrolled and active loyalty members, not all customers.
Reward costs and customer adoption materially affect ROI.
The default scenario values are intentionally conservative.

Sources are used to inform assumptions. Actual results depend on business type, offer design, customer behavior, and execution.