SEM PPC ROI Calculator

Why this is important

Google AdWords PPC (Pay per click) can be a great way of getting traffic and convert it to sales. However AdWords can also get painfully expensive fast if you don't know what you're doing.

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Ad Spend (Investment less Cost of Marketing) ($):
If you use agency, it may charge fees, which is usually about 7%. So, if your total marketing budget is $100,000, put here $93,000.

Cost of Marketing ($):
If you use agency, it may charge fees, which is usually about 7%. So, if your total marketing budget is $100,000, put here $7,000.

Sales Conversion Rate (%):
Average PPC conversion rate is generaly between 0.5% and 6%, depends how optimistic you want to be. If not sure, put 2%.

Cost Per Click ($):
Average PPC cost per click should be between $0.5 and $3. If not sure, put $1.5.

Average Order Value ($):
Average unit price. If not sure, put $250.

Profit Margin (%):
This is your profit margin. If not sure, put 10%. It can not be more then 100%. If left blank, will be treated as 100%.

Results of Calculations:

Estimated Clicks:
Total traffic

Estimated Units Sold:
Total amount of products sold

Estimated Cost Per Conversion:
Marketing cost of each sale

Estimated Revenue:
Total Revenue generated

Profitability / ROI

Total Marketing Spend ($):
Total Marketing Spend = Ad Spend + Cost of Marketing

ROI ($):
ROI (Return On Investment) = Estimated Revenue * Profit Margin

Profit ($):
Profit = ROI - Total Marketing Spend

Marketing Profitability (%):
Marketing Profitability = Profit / Total Marketing Spend

Profit Per Unit($):
Profit Per Unit = Profit / Estimated Units Sold

Sales Profitability (%):
Sales Profitability = Profit / (Total Marketing Spend + Estimated Revenue)

Please Note

This calculator is provided for estimates only. Past PPC performance is not a guarantee of future PPC performance.

If Profit is negative, you will not make any money, rather will loose money on your marketing campaign. If Profit is positive, it may still be not good enough. Therefore please review Sales profitability to make sure it is acceptable.

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