Separate PPC acquisition efficiency from profitability. Enter ad spend, clicks, website conversion rate, conversion-to-customer rate, customer value, gross margin, and management fees.
Pick your assumptions
- Return on ad spend
- 3.24:1
- Profit-based ROI
- 97.2%
Acquisition efficiency
- Cost per click
- $3
- Cost per website conversion
- $96
- Customer acquisition cost
- $160
- Break-even customer acquisition cost
- $315
Profitability
- Revenue
- $32,400
- Profit after direct costs
- $22,680
- Profit after PPC cost
- $11,180
- Break-even ROAS
- 1.64:1
ROAS divides ad-attributed revenue by ad spend. ROI subtracts total cost, including the optional agency fee, then divides the return by total cost. The brief defines these formulas without prescribing an industry benchmark.
Marketing & AEO Tool Suite brief § C5 (ROAS = revenue/ad spend; ROI uses total cost including optional agency fee)
Explain my results with AI
Optional. One click generates a short plain-English summary plus improvement suggestions. The calculator and exports still work if this fails.
How to calculate PPC ROI and ROAS
Website conversions equal clicks × website conversion rate. Customers equal conversions × conversion-to-customer rate. Revenue equals customers × customer value, and contribution profit equals revenue × gross margin. ROAS remains gross revenue ÷ ad spend; profit-based ROI compares contribution profit with total PPC cost.
PPC break-even ROAS and customer acquisition cost
Bars show gross revenue, profit after direct costs, and total PPC cost. Break-even customer acquisition cost equals customer value × gross margin. Break-even ROAS accounts for management fees and margin.
Frequently asked questions
How is PPC ROI calculated?
Profit-based PPC ROI equals (contribution profit − total PPC cost) ÷ total PPC cost. Contribution profit is revenue × gross margin. Total PPC cost includes ad spend plus agency or management fees.
What is the difference between ROAS and ROI?
ROAS is gross revenue ÷ ad spend only. Profit-based ROI applies gross margin and subtracts total PPC cost, including management fees. ROAS can look strong while profit-based ROI is negative.
How are CPC and CPA calculated?
Cost per click equals ad spend ÷ clicks. Cost per website conversion and customer acquisition cost use total PPC cost (ad spend + management fees), divided by website conversions or paying customers. Invalid denominators show N/A.
What are break-even CPA and break-even ROAS here?
Break-even customer acquisition cost is customer value × gross margin. Break-even ROAS is total PPC cost ÷ (ad spend × gross margin).
What happens with zero ad spend or zero total cost?
If ad spend is zero, ROAS and break-even ROAS show N/A, but profit-based ROI can still calculate when management fees create total cost. If total PPC cost is zero, ROI, CPC, cost per conversion, and customer acquisition cost show N/A while revenue and contribution can still display. A 0% gross margin is valid and produces $0 contribution profit; break-even ROAS then shows N/A.