CPC and budget calculator.
The calculator runs in both directions. Know the budget, and you get clicks, orders and expected revenue. Know the clicks you need, and you get the budget it takes.
Clicks
2,500
ROAS
1.5×
Conversions
50
Cost per conversion
€60
Revenue
€4,500
The same budget priced per impression
Equivalent CPM: €24
Meta bills per impression, Google Search per click. With this click rate the two prices are equivalent — useful when comparing channels.
01How the maths works
Clicks are budget divided by cost per click. Orders are clicks times conversion rate. Revenue is orders times order value. There is no more magic to it than that.
What makes it useful is not the formula but that it forces a number onto the conversion rate. Most budget discussions are about click price, even though conversion rate moves the result twice as much.
02Converting between CPC and CPM
Meta bills per thousand impressions, Google Search per click. To compare the two you need the click rate: a click price of one euro at a two percent click rate equals a CPM of twenty.
The field at the bottom does that conversion. It is worth knowing whenever someone claims one channel is cheaper than another.
03What the numbers do not tell you
The calculation says nothing about whether the orders make money. A low cost per order can still lose money if the contribution margin is thin enough.
Run the contribution numbers before you commit the budget. The break-even ROAS calculator does exactly that.
Questions
What is a normal click price?
It varies so much between industries that an average is useless. Run your own keywords through Google's Keyword Planner — ten minutes gets you a number that actually applies to you.
Can I use this for Meta?
Yes, if you know your actual click price. Meta bills per impression, so the click price is an outcome rather than a setting — use the conversion field to move between the two.
Read on
What is CPC?
CPC (Cost Per Click) is the price of one click. Closer to the result than CPM, but it's the conversion behind it that decides whether the click earns money.
What is CPM?
CPM is the price for 1,000 ad impressions, a measure of how expensive it is to be seen. But a low CPM is only good if the traffic converts.
Hvad er PPC (pay-per-click)?
PPC betyder, at du betaler pr. klik frem for pr. visning. Her er hvad det ændrer ved budgetter, budgivning og hvad du bør holde øje med.
Hvor stort skal jeres markedsføringsbudget være?
Glem procenten af omsætningen. Her er den metode, der regner budgettet ud fra dækningsbidrag, kundeværdi og hvor længe I kan vente på pengene.