PPC ROI Calculator
Are your PPC efforts profitable or not? Use this simple tool below to calculate your PPC ROI (Return On Investment) and find out! Input your metrics in the top four fields and your PPC profit metrics will be calculated and displayed below in real time.
Cost:
Conversions:
AOV / LTV:
Margin:
Your Profit is:
Your ROI Goal:
How To Calculate PPC ROI
Cost: Enter in your cost of PPC advertising, as reported directly from your PPC interface.
Conversions: Enter in the amount of conversions you received as reported directly from your PPC interface.
AOV (Average Order Value) / LTV (Lifetime Value): For e-commerce focused businesses, enter in the AOV as reported directly from your PPC interface. For lead generation focused businesses, enter in the LTV of a conversion for you.
Margin: Enter in your overall business gross profit margin percentage.
How To Interpret The Results
Your Profit: Your profit will tell you your estimated profit dollars you received from your PPC platform.
Your ROI Goal: Your ROI goal will be the ROI that you need in order to break even on advertising spend. Give this to your managing agency or in-house PPC manager as a minimum. As an example, if your ROI Goal is 200%, this means you need $2 for every $1 spent on advertising back in revenue to break even.
Why We Created This PPC ROI Calculator
As a team of seasoned marketers ourselves, we've experienced the challenges of balancing ad spend and maximizing returns firsthand. In a bustling digital landscape, where every click matters, you need to know whether your money is being put to good use and putting money back in your pocket.
Each marketing platform is different in the world of PPC with lots of different metrics to keep an eye on and the data can tell a different narrative depending on how you look at it. However, as long as you're able to identify the numbers used by our formula, you can use our PPC ROI calculator to get insight into the overall profitability of your marketing campaigns, and help dictate your strategy for the future.
At Digital Position we know that profit is at the top of our clients' minds - every decision we make needs to be based on the numbers that drive their businesses forward. If you're doing the math and the numbers aren't adding up in your favor, reach out to us and let's talk profit. We've been revitalizing brands and catapulting our clients into growth they never imagined.
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