PPC Budget & ROI Calculator
Forecast your ad spend and lead generation goals
Projected Campaign Forecast:
Required Monthly Budget:
Expected Clicks:
Cost Per Acquisition (CPA):
Projected Revenue:
ROAS (Return on Ad Spend):
Estimated Net Profit:
Mastering Your PPC Budget Strategy
Planning a Pay-Per-Click (PPC) campaign on platforms like Google Ads or Microsoft Advertising requires more than just picking keywords. To achieve a positive Return on Investment (ROI), you must understand the relationship between your Cost Per Click (CPC), Conversion Rate (CR), and Profit Margins.
How to Use the PPC Calculator
This tool helps you work backward from your revenue goals to determine exactly how much you need to invest in advertising. Here is how to interpret the inputs:
- Desired Conversions: The number of leads or sales you want to generate per month.
- Average CPC: The price you pay for a single click. This varies by industry; for example, legal services might see $15.00+ CPCs, while e-commerce might see $0.80.
- Conversion Rate: The percentage of website visitors who take your desired action. The average landing page conversion rate is roughly 2.35% to 5%.
- Avg. Sale Value: The gross revenue generated from one conversion.
Realistic Example: Professional Services
Imagine you are an HVAC contractor. Your goals might look like this:
- Target Sales: 20 New Customers
- Average CPC: $4.50
- Conversion Rate: 10% (High intent leads)
- Sale Value: $500 (Service call + repair)
Based on these numbers, you would need 200 clicks to get 20 sales. At $4.50 per click, your required budget is $900. Your revenue would be $10,000, resulting in a ROAS of 11.1x.
Key PPC Metrics to Monitor
Once your campaign is live, keep a close eye on your CPA (Cost Per Acquisition). If your CPA is higher than your profit margin on a sale, you are losing money. To improve your PPC performance without increasing your budget, focus on improving your website's Conversion Rate or increasing your Quality Score to lower your CPC.