ROI Calculator For PPC Ad Campaigns
ROI Calculator will help you determine your return on investment for a PPC advertising campaign.
Once you pass the input information about your campaign’s expected stats, the ROI calculator will show you how much money you’ll make from your PPC campaign and how many conversions or sales you’ll need to gather to stay profitable.
ROI (Return on Investment) is a financial metric used to measure the profitability or efficiency of an investment relative to its cost. To calculate ROI as a percentage, you can use the following formula:
ROI (%) = [(Net Profit or Gain from Investment) / (Cost of Investment)] * 100
How to calculate the ROI percentage
PPC ad campaign ROI Calculator
Here’s a step-by-step guide to calculating ROI percentage:
Step 1: Determine the “Net Profit or Gain from Investment”:
Calculate the total return generated by the investment. This can be calculated by subtracting the initial cost of the investment from the final value, including any additional income or gains generated from the investment.
The formula for net profit is:
Net Profit = Final Value of Investment – Cost of Investment
Step 2: Divide the Net Profit by the Cost of Investment:
Divide the net profit (calculated in Step 1) by the initial cost of the investment.
Step 3: Multiply by 100:
To express the result as a percentage, multiply the value obtained in Step 2 by 100.
Example:
Let’s say you invested $10,000 in stock, and after a year, the value of your investment grew to $12,500. To calculate the ROI percentage:
Step 1: Calculate the Net Profit:
Net Profit = $12,500 (Final Value) – $10,000 (Cost of Investment) = $2,500
Step 2: Divide Net Profit by Cost of Investment:
ROI = $2,500 (Net Profit) / $10,000 (Cost of Investment) = 0.25
Step 3: Multiply by 100 to get the percentage:
ROI (%) = 0.25 * 100 = 25%
So, in this example, the ROI percentage for the investment is 25%. This means you gained 25% on your initial investment over one year.
