Calculator Inputs
Example PPC Data Table
| Campaign | Spend | Impressions | Clicks | CVR | AOV | Revenue | ROAS | ROI |
|---|---|---|---|---|---|---|---|---|
| Brand Search | 900 | 48,000 | 2,160 | 4.2% | 55 | 4,989 | 5.54× | 92% |
| Non‑Brand Search | 2,100 | 130,000 | 3,900 | 2.1% | 62 | 5,080 | 2.42× | 18% |
| Retargeting | 650 | 210,000 | 2,730 | 1.6% | 58 | 2,534 | 3.90× | 44% |
Formula Used
- Clicks = Impressions × CTR
- Spend = Clicks × CPC
- Conversions = Clicks × Conversion Rate
- Gross Revenue = Conversions × (LTV or AOV)
- Net Revenue = Gross Revenue × (1 − Refund Rate) × (1 − Tax/Fee Rate)
- Gross Profit = Net Revenue × Profit Margin
- Net Profit = Gross Profit − Spend − Other Costs
- ROAS = Net Revenue ÷ Spend
- ROI (%) = (Net Profit ÷ Spend) × 100
- CPA = Spend ÷ Conversions
- CTR (%) = (Clicks ÷ Impressions) × 100
- CPM = (Spend ÷ Impressions) × 1000
- Break-even ROAS ≈ 1 ÷ Profit Margin (decimal)
How to Use This Calculator
- Pick the mode that matches your tracking reliability.
- Enter spend, clicks, and conversions when available.
- Add AOV or LTV to connect performance to revenue.
- Include profit margin to convert revenue into profit.
- Use refund and fee rates for more realistic net revenue.
- Press calculate, then export CSV or print a report.
Performance Notes
Revenue quality drives realistic ROAS
Use net revenue, not tracked revenue, when refunds and platform fees exist. With 4% refunds and 2.5% fees, every 10,000 in sales becomes 9,360 net. That shift alone changes a 4.00× headline ROAS into 3.74×, a difference large enough to flip scaling decisions.
Profit margin converts growth into cash
Margin is the bridge from ROAS to ROI. At 35% margin, 10,000 net revenue produces 3,500 gross profit. If spend is 2,500 and other costs are 300, net profit is 700 and ROI is 28%. Raising margin to 45% lifts net profit to 1,700 and ROI to 68%.
CPA targets should match unit economics
Break-even CPA is the per-order profit allowance before ads. If AOV is 60, margin is 35%, refunds are 4%, and fees are 2.5%, the break-even CPA is about 19.33. Paying 24 means each order loses roughly 4.67 unless LTV or upsells close the gap.
CPC and CVR explain performance movement
When ROI drops, split the problem into CPC and conversion rate. For example, clicks at 4,200 with CPC 0.65 yields 2,730 spend. If CVR falls from 2.4% to 1.8%, conversions fall from 101 to 76. That single change increases CPA from 27.03 to 35.92.
Impressions and CTR support upper-funnel planning
CTR helps translate reach into traffic. With 120,000 impressions and 3.5% CTR, clicks estimate to 4,200. If creative testing raises CTR to 4.2%, clicks rise to 5,040 at the same reach. Holding CPC steady, spend grows, but conversions and revenue can scale proportionally.
LTV mode enables longer-horizon bidding
Swap AOV for LTV when repeat purchase is meaningful. If AOV is 58 but LTV is 210, the same 101 conversions imply 21,210 revenue instead of 5,858. Even with 35% margin, the profit ceiling increases sharply, allowing higher CPA limits while still meeting ROI goals. Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value Value growth.
FAQs
What is the difference between ROAS and ROI?
ROAS compares revenue to ad spend. ROI compares profit to ad spend. ROAS can look strong while ROI is weak if margins, refunds, or extra costs reduce profit.
Should I use AOV or LTV?
Use AOV for first-order profitability. Use LTV when repeat purchase is predictable and measured. LTV supports higher CPA targets, but only if payback timing matches your cash constraints.
Why does the calculator adjust revenue for refunds and fees?
Refunds and platform fees reduce realized revenue. Using net revenue prevents inflated ROAS and helps set bids based on outcomes you can actually bank.
How do I set a break-even CPA?
Break-even CPA is the profit per conversion available for ads. Enter margin, AOV or LTV, and adjustment rates. If your CPA exceeds break-even CPA, the campaign needs efficiency gains or higher value.
What inputs matter most for forecasting?
Spend, clicks, conversion rate, and AOV or LTV drive the forecast. CTR and impressions help estimate traffic volume, while margin determines whether growth translates into profit.
Can I use this for lead generation?
Yes. Treat a “conversion” as a qualified lead and use estimated value per lead or downstream LTV. Keep margin aligned with sales costs so ROI reflects true profitability.