LinkedIn Ad Cost Calculator

How to use this LinkedIn ad cost calculator

To calculate your LinkedIn ad cost, enter your target revenue, average revenue per conversion, conversion rate, and cost-per-click (CPC). This calculator will instantly calculate your LinkedIn ad cost and ad ROI, helping you make data-driven decisions for your ad campaigns.

LinkedIn ad cost formula

LinkedIn Ad Cost = Required Clicks × CPC

The required clicks are calculated as follows:

Required conversions = Target Revenue / Average Revenue per Conversion
Required clicks = Required Conversions / Conversion Rate

Additionally, you can calculate the ROI of your LinkedIn ad campaign as follows:

LinkedIn ad ROI = ((Target Revenue - LinkedIn Ad Cost) / LinkedIn Ad Cost) x 100

Understanding the LinkedIn ad cost result

Several factors determine your LinkedIn ad cost, such as your target audience, industry, ad competition etc. You must decide your ideal cost based on these factors.

• A high LinkedIn ad cost may indicate high competition in your industry or inefficient ad performance, especially if it is paired with a low ROI.
• A low ad cost suggests better audience targeting and ad efficiency. However, you should still monitor your ROI to ensure that the campaign remains profitable.

When to calculate LinkedIn ad cost

It’s essential to calculate LinkedIn ad cost in the following cases:

• Before launching a campaign to set realistic budget expectations
• While adjusting campaign parameters to assess their cost impact
• To evaluate the performance of an ongoing campaign in relation to spending
• After making changes to your bidding strategy or CPM

How to calculate LinkedIn ad cost (with example)

Let’s assume your target revenue is $60,000, your average revenue per conversion is $3,000, your conversion rate is 5%, and your CPC is $5. The LinkedIn ad cost in this situation can be calculated as follows:

LinkedIn Ad Cost = Required Clicks × CPC

Required conversions = 60,000 / 3,000 = 20 conversions
Required clicks = 20 / 0.05 = 400 clicks
LinkedIn ad cost = 400 × 5 = $2,000

LinkedIn ad ROI = ((60,000 - 2,000) / 2,000) x 100 = 2,900%

In this example, your LinkedIn ad campaign would cost $2,000 to generate $60,000 in revenue, resulting in an ROI of 2,900%.

How to improve your LinkedIn ad cost

• Target highly relevant audiences based on job titles, industries, and experience
• Create compelling ad copy and visuals to engage your professional audience
• Experiment with different ad formats like Sponsored Content, InMail, and Text Ads
• Refine your targeting and bidding strategies based on performance data
• Continuously monitor campaign performance and adjust bids, creatives, and targeting for optimal results