PPC/Ad ROI Calculator
How to Use the PPC/Ad ROI Calculator
This calculator helps you measure the performance of your Pay-Per-Click (PPC) advertising campaigns, such as those on Google Ads or Facebook Ads. It breaks down your return into the most important metrics.
- Total Ad Spend ($): Enter the total amount of money you spent on your advertising campaign.
- Total Revenue from Ads ($): Enter the total revenue generated *directly* from this ad campaign.
- Total Clicks: The total number of clicks your ads received.
- Total Conversions (Sales): The total number of sales or qualified leads generated from the campaign.
Click "Calculate Ad ROI" to see your campaign's performance, including CPC, CPA, ROAS, and overall ROI.
Understanding Your Ad Performance Metrics
Cost Per Click (CPC): The average amount you paid for each click on your ad.
Formula: Total Ad Spend / Total Clicks
Cost Per Acquisition (CPA): The average cost to acquire one new customer (or conversion).
Formula: Total Ad Spend / Total Conversions
Net Profit: The profit from your ad campaign after subtracting the ad spend.
Formula: Total Revenue - Total Ad Spend
Overall ROI: The percentage return on your ad investment, based on profit.
Formula: (Net Profit / Total Ad Spend) * 100
Return on Ad Spend (ROAS): This is the most common metric for ad performance. It measures gross revenue earned for every dollar spent.
Formula: Total Revenue / Total Ad Spend
A ROAS of 4:1 means you earn $4 for every $1 you spend.
ROAS vs. ROI: What's the Difference?
It's crucial to understand both:
- ROAS (Return on Ad Spend) measures the *revenue* generated by your ads. It answers: "Are my ads generating sales?"
- ROI (Return on Investment) measures the *profit* generated by your ads. It answers: "Is my ad campaign actually profitable?"
You can have a positive ROAS (e.g., 2:1, or $2 revenue for $1 spent) but a negative ROI if your product's profit margins are low. For example, if your product costs $1.50 to produce, that $2 in revenue is still a $0.50 loss. This calculator shows you both metrics so you have a complete picture.