How This PPC ROI Calculator Works
Enter your monthly ad spend, average cost-per-click, landing page conversion rate, average order value, and optionally your cost of goods sold percentage. The calculator outputs monthly clicks, conversions, revenue, gross profit (if COGS is entered), ROI percentage, and ROAS.
PPC ROI Formula
Monthly Clicks = Ad Spend / Average CPC
Monthly Conversions = Clicks × Conversion Rate
Monthly Revenue = Conversions × Average Order Value
ROI = ((Revenue − COGS − Ad Spend) / Ad Spend) × 100
ROAS = Revenue / Ad Spend
Worked Example
Ad spend: $2,000/month. Average CPC: $2.00. Conversion rate: 3%. Average order value: $150. COGS: 0%.
- Monthly clicks: $2,000 / $2.00 = 1,000 clicks
- Monthly conversions: 1,000 × 3% = 30 conversions
- Monthly revenue: 30 × $150 = $4,500
- ROI: (($4,500 − $2,000) / $2,000) × 100 = 125%
- ROAS: $4,500 / $2,000 = 2.25x
Related Tools
Model your organic search returns with the SEO ROI calculator. Compare long-term content investment returns with the content marketing ROI calculator. See how your results compare against industry norms on the marketing ROI benchmarks page.
Frequently Asked Questions
What is PPC ROI?
PPC ROI measures how much profit you earn relative to your ad spend. Formula: ROI = ((Revenue − Ad Spend) / Ad Spend) × 100. A 100% ROI means you doubled your money. For profitability, subtract COGS before calculating ROI.
What is ROAS and how is it different from ROI?
ROAS (Return on Ad Spend) = Revenue / Ad Spend. ROAS of 4 means $4 revenue per $1 spent. ROI accounts for cost of goods and other expenses; ROAS is a gross revenue multiple. A 4x ROAS with 60% COGS yields an ROI of 60%, not 300%.
What is a good ROAS for Google Ads?
A 4:1 ROAS (400%) is a common target for e-commerce. B2B campaigns often target 3:1 due to longer sales cycles and higher deal values. Break-even ROAS = 1 / gross margin. If your gross margin is 50%, you need at least 2x ROAS to break even.
How do I calculate monthly clicks from ad spend?
Monthly Clicks = Ad Spend / Average CPC. If you spend $2,000 at a $2 average CPC, you get 1,000 clicks per month. Actual CPC varies by keyword, quality score, and competition — use your Google Ads account average CPC for accuracy.
What conversion rate should I use?
Use your actual landing page conversion rate from Google Ads or Google Analytics. Industry averages range from 2–4% for e-commerce and 3–6% for lead generation. B2B SaaS free trial pages typically convert at 3–8%. Always use your own data when available.
How do I improve my PPC ROI?
The four levers are: lower CPC (better Quality Scores, negative keywords, bid optimization), higher conversion rate (landing page optimization, offer improvement), higher average order value (upsells, bundles), and lower COGS (supplier negotiation, operational efficiency). This calculator shows how each variable affects ROI.
Should I enter monthly or total ad spend?
Enter monthly ad spend. All results — clicks, conversions, revenue, profit — are calculated on a monthly basis. To model a full campaign period, multiply monthly results by the number of months.
Does this calculator work for Facebook Ads or other platforms?
Yes. The formula is platform-agnostic. Enter your platform's average CPC, your landing page conversion rate, and AOV. The underlying ROI and ROAS math is identical regardless of the ad platform.