function calculatePPC() {
// Get input values
var budget = parseFloat(document.getElementById('adBudget').value);
var cpc = parseFloat(document.getElementById('cpc').value);
var convRate = parseFloat(document.getElementById('convRate').value);
var saleValue = parseFloat(document.getElementById('saleValue').value);
// Validation
if (isNaN(budget) || isNaN(cpc) || isNaN(convRate) || isNaN(saleValue) || cpc === 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
// Calculations
var clicks = budget / cpc;
var conversions = clicks * (convRate / 100);
var revenue = conversions * saleValue;
var profit = revenue – budget;
// ROI Formula: (Net Profit / Cost of Investment) * 100
var roi = (profit / budget) * 100;
// ROAS Formula: Revenue / Cost
var roas = revenue / budget;
// CPA Formula: Cost / Conversions
var cpa = conversions > 0 ? budget / conversions : 0;
// Display Results
document.getElementById('resultsArea').style.display = 'block';
document.getElementById('resClicks').innerText = Math.floor(clicks).toLocaleString();
document.getElementById('resConversions').innerText = Math.floor(conversions).toLocaleString();
document.getElementById('resCPA').innerText = '$' + cpa.toFixed(2);
document.getElementById('resRevenue').innerText = '$' + revenue.toFixed(2);
var profitEl = document.getElementById('resProfit');
profitEl.innerText = '$' + profit.toFixed(2);
profitEl.style.color = profit >= 0 ? '#2c3e50' : '#c62828';
var roiBox = document.getElementById('roiBox');
var roiText = document.getElementById('resROI');
roiText.innerText = roi.toFixed(2) + '%';
document.getElementById('resROAS').innerText = roas.toFixed(2);
// Styling based on positive/negative ROI
if (roi >= 0) {
roiBox.className = 'highlight-roi';
roiBox.style.color = '#2e7d32';
roiBox.style.backgroundColor = '#e8f5e9';
roiBox.style.borderColor = '#c8e6c9';
} else {
roiBox.className = 'highlight-roi negative';
roiBox.style.color = '#c62828';
roiBox.style.backgroundColor = '#ffebee';
roiBox.style.borderColor = '#ffcdd2';
}
}
Understanding PPC ROI
Calculating the Return on Investment (ROI) for your Pay-Per-Click (PPC) campaigns is crucial for any digital marketing strategy. It moves beyond vanity metrics like clicks and impressions to measure the actual profitability of your ad spend. By understanding your ROI, you can make data-driven decisions on whether to scale a campaign or pause it.
This calculator helps you estimate the potential returns based on four critical metrics:
- Total Ad Budget: The amount of money you are willing to spend on the platform (Google Ads, Facebook Ads, etc.).
- Cost Per Click (CPC): The average amount you pay for each visitor who clicks on your ad. This varies by industry and competition keyword density.
- Conversion Rate: The percentage of visitors who click your ad and proceed to take a desired action (purchase, sign-up, lead form).
- Average Value Per Sale: The revenue generated from a single conversion (often referred to as AOV or Average Order Value).
The Formula Behind the Numbers
To determine the success of your campaign, we use the standard ROI formula adapted for digital marketing:
ROI = ((Total Revenue – Total Cost) / Total Cost) * 100
We also calculate ROAS (Return on Ad Spend), which is simply Revenue divided by Cost. While ROI accounts for profitability (deducting the cost), ROAS looks at gross revenue efficiency. A ROAS of 4.0 means for every $1 spent, you generate $4 in revenue.
Interpreting Your Results
If your ROI is positive, your campaign is generating profit. For example, an ROI of 50% means you earned $1.50 back for every $1.00 spent (your original dollar plus $0.50 profit).
If your ROI is negative, you are losing money on the campaign. To fix this, you must either lower your CPC (via better Quality Score or targeting), increase your Conversion Rate (via landing page optimization), or increase your Customer Lifetime Value.