PPC calculator
Use our FREE PPC calculator to help calculate KPIs such as estimated clicks and orders, total advertising cost, average cost per order and overall net return on investment (ROI).
Simply add your campaign metrics in the left-hand column, such as overall PPC budget (advertising spend), average cost per click (CPC) and overall conversion rate (CR) to a successful order.
The calculators are in real-time with results shown in the right-hand column as you enter or update your input values. You can have the results emailed as well.
How to use the PPC calculator – step-by-step guide
1. Advertising Spend (£)
What it means: This is your total budget for the PPC campaign. Think of it as the pot of money you’re investing in ads.
Why it matters: Knowing how much you’re spending allows you to calculate the cost of driving traffic and generating revenue.
Example: You’re planning to spend £2,000 this month on Google Ads. Pop “2000” into the field.
2. Average Cost Per Click (CPC) (£)
What it means: This is the amount you pay every time someone clicks on your ad. It’s usually determined by bidding on keywords and the competition in your industry.
Why it matters: CPC helps determine how far your budget will stretch. Lower CPC = more clicks for your money.
Example: You’re in the niche hot tub market (don’t we all love a hot tub). The average CPC for your ads is £5.00. Enter “5”.
3. Conversion Rate to Order (CR) (%)
What it means: The percentage of people who click on your ad and go on to make a purchase. It’s the magic moment when all that ad spend pays off.
Why it matters: Even with a ton of traffic, a low conversion rate means you’re leaving money on the table. Improving CR = better ROI.
Example: For every 100 people who click on your ads, 10 make a purchase. Your conversion rate is 10%, so you’ll input “10”.
4. Conversion Rate to Order (CR) (%)
What it means: The average amount customers spend per order. If you sell a mix of products, AOV is the sweet spot between your low-cost and high-cost items.
Why it matters: Higher AOV = more revenue from the same number of sales.
Example: Your customers spend an average of £150 per order. Input “150” here.
5. Profit Per Order (£)
What it means: The amount you make on each sale after accounting for production, shipping, and other costs. (Basically, your sweet, sweet profit margin.)
Why it matters: Knowing your profit per order helps you figure out if your ad spend is worth it. Without profit, PPC is just a donation to Google.
Example: After costs, you make £30 on each sale. Input “30”.
6. PPC Management Fee (%)
What it means: The percentage of your advertising spend that goes to your PPC agency or management platform. This could be a fixed percentage or a negotiated fee.
Why it matters: It ensures the calculator includes all your costs, so your ROI calculation is accurate.
Example: Your agency charges 10% of your advertising spend. Add “10” to this field.
Let’s see it in action
Imagine you’ve filled in the calculator like this:
- Advertising spend: £2,000
- CPC: £5.00
- Conversion Rate: 10%
- AOV: £150
- Profit Per Order: £30
- PPC Management Fee: 10%
When you hit calculate, here’s what you’d get:
- Estimated Clicks: 400 (your £2,000 budget divided by the £5 CPC)
- Estimated Orders: 40 (10% of the 400 clicks convert into sales)
- Order Revenue: £6,000 (£150 AOV × 40 orders)
- Profit: £1,200 (£30 profit per order × 40 orders)
- Total Advertising Cost: £2,200 (£2,000 + 10% management fee)
- ROI: 172.73% (Profit divided by the total advertising cost, expressed as a percentage)
- Average Cost Per Order: £55.00 (Total advertising cost divided by 40 orders)
Pay per click (PPC) FAQs
PPC (Pay-Per-Click) advertising is a digital marketing model where advertisers pay a fee each time someone clicks on their ad. It’s commonly used on platforms like Google Ads, Facebook Ads, and LinkedIn.
PPC is important because it allows businesses to reach targeted audiences actively searching for their products or services. With PPC, you can control your budget, track performance, and see measurable results quickly. Unlike organic marketing, PPC gives you instant visibility and a way to test what works for your audience.
Further Reading: Google Ads Overview | A Beginner’s Guide to PPC
Learn more about Submerge’s PPC agency services.
ROI measures the profitability of your PPC campaign. It’s calculated using this formula:
ROI (%) = ((Revenue – Total Advertising Cost) / Total Advertising Cost ) * 100
For example, if your campaign generates £6,000 in revenue, and your total advertising cost is £2,200, your ROI is:
ROI = ((6000 – 2200) / 2200 ) * 100
A positive ROI means your campaign is profitable, while a negative ROI indicates a loss.
Conversion rates vary by industry, but a good benchmark is 2-5%. Some industries (eg, finance or healthcare) can see higher CRs due to their highly motivated audiences, while others (eg, retail) might be on the lower end. To improve CR, ensure your landing pages are optimised, your ad copy aligns with search intent, and your CTA (Call-To-Action) is clear and compelling.
Learn more about Google Ads benchmarks.
Lowering CPC means you can stretch your budget further.
Here’s how:
Improve Quality Score – Google Ads rewards relevant ads with lower CPC. Ensure your keywords, ad copy, and landing pages align closely.
Target long-tail keywords – These have lower competition but higher intent (eg, best running shoes for flat feet).
Use negative keywords – Exclude irrelevant search terms to avoid wasted clicks.
Adjust bids – Lower bids for underperforming campaigns or geographic areas.
AOV is the average amount customers spend per order.
It’s calculated by dividing total revenue by the number of orders.
To increase AOV:
- Upsell and cross-sell – suggest premium versions or complementary products at checkout.
- Bundle products – Offer discounts for buying sets of items.
- Free shipping thresholds – Encourage larger orders by offering free shipping for spending over a certain amount.
Further reading: How to Increase AOV by Shopify
To determine profitability:
Calculate your ROI (explained in FAQ #2, above).
Compare your Profit Per Order against your Cost Per Order (from the calculator results).
Ensure your Lifetime Value (LTV) of a customer exceeds the cost to acquire them (CAC).
Track ROAS (Return on Ad Spend) as another profitability indicator.
Further reading: PPC Metrics for Profitability
The management fee accounts for costs paid to an agency or platform for running your PPC campaigns. This ensures your ROI calculation is accurate and reflects the true cost of running ads. Agencies such as Submerge typically charge between 5-20% of ad spend or a flat fee.
If you’re managing campaigns yourself, you can skip this field.
Learn how much PPC management should cost.
Both are critical PPC metrics but measure different things:
ROI – Looks at overall profitability, factoring in all costs (ad spend, product costs, management fees).
ROAS – Only measures revenue compared to ad spend.
Formula:
ROAS = (revenue / ad spend) * 100
Example: If you generate £6,000 in revenue from a £2,000 ad spend, your ROAS is 300%.
This metric shows how much you’re spending on ads to generate each sale. It’s calculated by dividing your Total Advertising Cost by the number of Estimated Orders. A lower cost per order means your campaign is more efficient. Compare this number to your Profit Per Order to ensure you’re not overspending.
The most important metrics include:
- Clicks and Click-Through Rate (CTR) – How effectively your ad attracts interest.
- Cost Per Click (CPC) – The cost of generating traffic.
- Conversion Rate (CR) – How well traffic converts into sales.
- Return on Ad Spend (ROAS) – The revenue return on your ad spend.
- Quality Score – Google’s rating of ad relevance.
- Impressions Share – How much of your audience you’re reaching.