PPC Calculator

How to use this PPC calculator

To calculate your PPC performance, enter your projected monthly ad spend, expected cost-per-click (CPC), target conversion rate, lead to customer rate, and average sales price. The calculator will instantly calculate your PPC performance as a percentage, giving you insights about the overall performance of your PPC campaigns.

PPC formula

PPC performance = ((Total Revenue - Projected Monthly Spend) / Projected Monthly Spend) × 100

The above formula takes into account multiple variables. Here, the total revenue is calculated as follows:

Total Clicks = Projected Monthly Spend / Expected CPC

Total Conversions = Total Clicks × (Target Conversion Rate / 100)

Total Customers = Total Conversions × (Lead to Customer Rate / 100)

Total Revenue = Total Customers × Average Sales Price

Understanding the PPC result

The ideal PPC result will vary based on your industry, product, business goals, advertising host etc. Typically:

• A high PPC percentage indicates that your PPC ad campaigns are generating high revenue when compared to the amount you are spending. The higher your PPC percentage, the better is your performance.
• A low PPC percentage signals that your PPC campaigns are not providing the expected returns and that you need to optimize your targeting, ad copy or bid strategy.

When to calculate PPC performance

Here are some key scenarios when you should calculate your PPC performance:

• To assess the profitability of new campaigns
• After making changes to ad copy, targeting, or bidding strategy
• To determine if your campaigns are ready for scaling
• While comparing different PPC platforms or ad formats
• To monitor the ongoing performance of your campaigns

How to calculate PPC (with example)

Let’s say you have a projected monthly spend of $10,000, expected CPC of $2, a target conversion rate of 5%, a lead to customer rate of 20%, and an average sales price of $500. Your PPC percentage can be calculated as follows:

PPC performance = ((Total Revenue - Projected Monthly Spend) / Projected Monthly Spend) × 100

PPC performance = ((25,000-10,000)/10,000) x 100 = 150%

Here,

Total Clicks = 10,000 / 2 = 5,000 clicks

Total Conversions = 5,000 × (5 / 100) = 250 conversions

Total Customers = 250 × (20 / 100) = 50 customers

Total Revenue = 50 × 500 = $25,000

In this example, your PPC performance is 150%, which means that your campaign generated 1.5x the revenue of your monthly spend.

How to improve your PPC performance

• Optimize your keyword selection to reduce unnecessary ad spend
• Improve your ad copy to increase click-through rates (CTR)
• Test landing pages for higher conversion rates
• Adjust bidding strategies to maximize return on investment (ROI)
• Monitor and refine targeting for better audience alignment