The Advertising ROI Calculator

The calculator to plan spending on the ads

What are the factors that an Ad depends on?

Running ads on the browse requires a mind-numbing calculation with some complex terms.
Make a proper estimation of an advertisement to ensure a higher conversion rate and,
ultimately, profit on investment.

Monthly Expense for Ads

$
It is the monthly budget spent for advertisement by a company. One can set the maximum and minimum amount that can be spent on the ads. It’s generally said that you should spend approximately around 7% to 8% of the yearly profit.

Predicted CPC for Ads

$
Whenever an advertiser pays a publisher for an advertisement, it is based on the CPC (cost per click) means each time an ad is clicked, the publisher is paid. An average or maximum cost per click can be set for Ads which is also depending on the results expected by the business.

Target Conversion Rate

%
It is the target conversion got from the total number of people who visited and clicked the advertisement. It is calculated in percentage.

Average Sale Price

$
The average sale price is the product value that a customer will pay. The quantity is used to calculate the value of a lead(customer), which again is a variable factor for businesses over time.

Lead to Customer Rate

%
Based on the company’s retention rate, it can be seen that the company is able to keep and maintain its customers from the beginning and over time. Based on the number of customers at the beginning, at the end, and the new customers gained in between, the customer retention rate (CRR) is calculated.

Result

No of Clicks:
2000 
No of Leads:
20 
Cost-Per-Lead:
$ 250
Value of a Lead:
$ 500
Expected Revenue:
$ 10000
Expected Profit:
$ 5000
Return on Ad Spend:
100 %
FAQs

Lead value can be calculated by the total of sales divided by the total number of leads. By calculating leads by this formula, you can get the value of a single lead.