Welcome to PPC Calculator! How to Calculate you PPC Campaigns ROI
The definition of PPC, pay per click, is when the host of the website gets paid every time a consumer clicks on an ad. There are two different types of PPC. There is flat-rate PPC and bid-based PPC. The different PPC’s vary according to the type of website and the type of ad’s that will be placed on your site.
The flat-rate model of PPC lets the publisher and the advertiser agree on one amount to pay per click. The amount a publisher can charge can vary according the content on the webpage. The more popular the content is the higher price they can charge per click. The bid-based model of PPC lets advertisers compete against each other for the best deal. The advertisers can let the publishers know exactly how much they are willing to pay per click and the auction will go from there.
ROI stands for rate of investment. This is a ratio between the amount of money you have invested and the amount of money you have made. This number is almost always represented as a percentage instead of a fraction.
When it comes to calculating your ROI, there are a couple of different categories you can look under. There are some single-period formulas and some multi-period formulas. The multi-period formulas help you take an average over a few months. These formulas are using your initial investment and your final amount of money. This will let you see a ratio of how much money you have put into this project against how much you have gotten out of it.
- Use our free online PPC Calculator Widget
There are many different tools to calculate your ROI based on your PPC so you don’t have to make the calculations yourself. These calculators are available online so you can easily input your values to get the desired result. There are different spaces for your values to be entered. The calculator automatically calculates the percentage and gives it to you at the end of the process.
The first value you need for the calculator is the amount of clicks you receive in a month. You can find this number on your activity report. You then need your cost per click, averaged, and the conversion rate based on your results. You will also need the average profit you have made per conversion. Once all of these values have been inputted into the calculator, you can start your calculations. There are a few different results that you will see from the calculator.
The first result is called the monthly campaign cost. You will also find out the number of conversions you receive from traffic and the profit you receive from traffic. The profit per conversion is telling you what your profit is for each sale on the website. Last but not least you will see your PPC ROI. This is what you used the calculator for in the first place. If you are a more visual person and you need to calculate it on your own, grab those values and start calculating.