Free ROAS/ROI Calculator for PPC

How to use the ROAS calculator

Whether you’re looking to calculate PPC ROI for future campaigns or pulse-checking current ones, this tool provides the numbers you need in a flash, including ROAS, cost per lead, and profit estimates.

Use the sliders or the fields above to select your PPC campaign values:

• Campaign budget: The total amount of budget allocated to your PPC campaign.
• Cost per click: The total spend divided by total number of clicks. If you don’t know your campaign’s CPC, try using the average CPC for paid search overall (currently about $5) or the benchmark CPC for your industry.
• Conversion rate: Your campaign’s total number of clicks divided by its number of conversions. If you don’t know your campaign’s conversion rate, try using the average for paid search overall (currently about 8%) or the benchmark conversion rate for your industry.
• Conversion value: The amount of profit or revenue you expect to earn from each campaign conversion. In other words, what is a conversion worth to your business?

The ROAS/ROI calculator uses these values to calculate your return on investment and return on ad spend, as well as your estimated total number of clicks and leads, your estimated cost per lead, and your expected profit.

You can also use the calculator for PPC campaign planning. Adjust the inputs to see how increasing your budget or conversion rate will impact your cost per lead and ROAS. Or, try experimenting with a lower average cost per click (corresponding to more cost-effective keywords) to see how that would change your campaign results.

Need more help understanding your PPC ROI or campaign performance? Talk to one of our experts.

FAQ

Why are ROAS and ROI important?

ROAS and ROI are critical to measuring your PPC results because they validate your budget. A PPC advertising campaign is a justifiable use of your business’s overall budget if it’s delivering a return on your initial investment. Simply put, high ROAS and ROI mean you’re getting more from your campaign than you’re putting in, indicating how effective your ads are at reaching potential customers and convincing them to convert.

How are ROAS and ROI calculated?

Here is a breakdown of the formulas for each PPC metric you can measure with this tool:

• ROAS: This stands for return on ad spend, which is calculated by dividing your ad revenue by your ad spend. ROAS is usually represented as a percentage (such as 300%) or a ratio (such as 3:1).
• ROI: This stands for return on investment, which is calculated by dividing your ad revenue, minus your total cost, by the total cost invested into a campaign. ROI is usually represented as a dollar amount.

How do you calculate a PPC campaign budget?

Your campaign budget depends on a number of factors, such as what your business can afford, your campaign goals and expectations, industry competition, and others. Most PPC campaigns run on a daily budget, so you can multiply your ideal daily budget by 30.4 to get an overall average monthly budget. As a starting point, check out our study of Google Ads accounts to see the average spend for most small business advertisers, or see this resource on Google Ads budgets.

What is the difference between ROAS, ROI, and profit for a PPC campaign?

ROAS, ROI, and profit are just slightly different ways of looking at the return you get your PPC investment. Our tool provides all three metrics: profit (expressed in dollars), ROI (profit minus your campaign cost), and ROAS (a ratio of return to ad spend).

So, is this tool the same as a PPC profit calculator? Essentially, yes! This calculator is designed to help you understand the return your business will get after investing money into a paid ads campaign.

How much does PPC management cost overall?

This PPC advertising calculator will help you calculate your return on investment and return on ad spend, but remember, there are other costs associated with advertising online, like software subscriptions or agency fees. While free tools can help you get a sense of your PPC costs and profits, talk with your marketing partner for the most accurate data on PPC management pricing. Or check out our guide to Google Ads costs.

How do I improve my ROAS/ROI from PPC?

Remember, the results from this PPC advertising calculator will depend on your inputs, so try adjusting the metrics to see how you can get closer to achieving your advertising goals. If your ROAS or ROI isn’t as high as you hoped, don’t be discouraged! Check out our latest benchmarks report to see what the average costs for PPC look like in your industry. These reports include expert tips and insights for how you can optimize your campaigns according to your budget. Plus, be sure to see our tips on how to lower cost per click and cut advertising costs.