BRIEF INSTRUCTIONS

This simple calculator provides you with an accurate return on investment (ROI) with regard to pay-per-click ad spend.

This can make all the difference between a profitable campaign and a loss making one.

PROJECT BUDGET

This is the amount you plan on spending. You can enter a figure for the day, the week, a month, or the life of the campaign itself. Whatever makes sense for you.

COST-PER-CLICK

Most services such as Facebook advertising and Google Adwords let you know how much you can expect to pay per click.

CONVERSION RATE

This is the percentage of people who click on the ad and then go on to buy your product or service.

LIFETIME VALUE

This figure is very important as it can make all the difference between an ad campaign being profitable or loss-making.

Some projects will involve a single sale. In this case the lifetime value will be the value of that single sale.

However, in many businesses the lifetime value will include all the additional purchases that a customer might make over a period of months or years.

Example 1

The average customer clicks on your ad, buys your product and is never seen again. In this case the lifetime value is the revenue generated from that single sale.

Example 2

Someone buys a printer and in the following three years (when the printer finally breaks down) they buy ten ink cartridges from you. In this case the lifetime value is the total value of the printer and ten cartridges.