Calculator

Quick Formula

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Reference

50 Essential Advertising Calculations

The formulas every PPC, DSP, and retail media professional should know.

CTR — Click-Through Rate

Core

Clicks / Impressions x 100

500 / 100,000 x 100 = 0.5%

CPC — Cost Per Click

Core

Ad Spend / Clicks

$500 / 250 = $2.00

CPM — Cost Per 1,000 Impressions

Core

(Spend / Impressions) x 1,000

($500 / 100,000) x 1,000 = $5.00

CPA — Cost Per Acquisition

Core

Spend / Conversions

$1,000 / 20 = $50 CPA

CVR — Conversion Rate

Core

Conversions / Clicks x 100

20 / 500 x 100 = 4%

ROAS — Return on Ad Spend

Core

Revenue / Ad Spend

$10,000 / $2,500 = 4x

ACoS — Advertising Cost of Sale

Amazon

(Spend / Revenue) x 100

($2,500 / $10,000) x 100 = 25%

TACoS — Total ACoS

Amazon

(Spend / Total Revenue) x 100

$2,500 / $20,000 = 12.5%

ROI — Return on Investment

Core

(Revenue - Cost) / Cost x 100

($10,000 - $6,000) / $6,000 x 100 = 66.7%

Max CPC Bid

Bidding

Price x Target ACoS x CVR

$30 x 25% x 3% = $0.225

Breakeven ACoS

Profitability

(Price - COGS - Fees) / Price x 100

($30 - $8 - $4.50) / $30 x 100 = 25%

Gross Margin

Profitability

(Revenue - COGS) / Revenue x 100

($30 - $8) / $30 x 100 = 73.3%

Contribution Margin

Profitability

Revenue - Variable Costs

$30 - $8 - $4.50 - $6 = $11.50

LTV — Customer Lifetime Value

Advanced

AOV x Purchase Frequency x Lifespan

$50 x 4 x 3 = $600

Max CPA (from LTV)

Advanced

LTV x Target Margin

$600 x 30% = $180 max CPA

CPL — Cost Per Lead

Core

Spend / Total Leads

$1,000 / 50 = $20 CPL

Lead-to-Close Rate

Core

Closed Deals / Leads x 100

5 / 50 x 100 = 10%

Revenue Per Click

Core

Revenue / Total Clicks

$10,000 / 500 = $20 RPC

Impression Share

Google Ads

Your Impressions / Eligible Impressions x 100

50,000 / 200,000 x 100 = 25%

Quality Score CPC Impact

Google Ads

Competitor Ad Rank / Your QS + $0.01

40 / 8 + $0.01 = $5.01

Ad Rank

Google Ads

Max CPC Bid x Quality Score

$2.00 x 8 = Ad Rank 16

Effective CPM (eCPM)

DSP

(Earnings / Impressions) x 1,000

($50 / 10,000) x 1,000 = $5

Viewability Rate

DSP

Viewable Impressions / Total Impressions x 100

70,000 / 100,000 x 100 = 70%

VCR — Video Completion Rate

DSP

Video Completions / Starts x 100

8,000 / 10,000 x 100 = 80%

CPCV — Cost Per Completed View

DSP

Spend / Completed Views

$500 / 8,000 = $0.0625

Frequency

DSP

Total Impressions / Unique Reach

100,000 / 20,000 = 5x frequency

Reach

DSP

Total Impressions / Frequency

100,000 / 5 = 20,000 unique users

Budget Pacing Daily Target

Planning

(Budget - Spend to Date) / Days Remaining

($10,000 - $4,000) / 15 = $400/day

Pacing Percentage

Planning

(Actual Spend / Expected Spend) x 100

($4,000 / $5,000) x 100 = 80%

Projected Month-End Spend

Planning

Spend / Days Elapsed x Days in Month

$4,000 / 15 x 30 = $8,000

Share of Voice

Advanced

Your Impressions / Market Impressions x 100

500,000 / 5,000,000 x 100 = 10%

NTB Rate — New-to-Brand

Amazon

NTB Orders / Total Ad Orders x 100

30 / 100 x 100 = 30%

ASIN-Level ROAS

Amazon

ASIN Revenue / ASIN Ad Spend

$5,000 / $1,000 = 5x

Glance View Rate

Amazon

Glance Views / Impressions x 100

2,000 / 100,000 x 100 = 2%

Unit Session Percentage

Amazon

Units Ordered / Sessions x 100

150 / 3,000 x 100 = 5%

Referral Fee

Marketplace

Selling Price x Referral Fee %

$30 x 15% = $4.50

FBA Fee as % of Revenue

Marketplace

(FBA Fee / Selling Price) x 100

($6 / $30) x 100 = 20%

Net Proceeds Amazon SC

Marketplace

Price - Referral Fee - FBA Fee - COGS

$30 - $4.50 - $6 - $8 = $11.50

Max Ad Spend per Unit

Marketplace

Net Proceeds before ads

$11.50 max you can spend on ads per sale

Blended ROAS

Advanced

Total Revenue / Total Ad Spend all channels

$50,000 / $8,000 = 6.25x

MER — Marketing Efficiency Ratio

Advanced

Total Revenue / Total Marketing Spend

$500,000 / $50,000 = 10x MER

CAC — Customer Acquisition Cost

Advanced

Total Sales & Marketing Spend / New Customers

$10,000 / 100 = $100 CAC

LTV:CAC Ratio

Advanced

LTV / CAC

$600 / $100 = 6:1 ratio

Payback Period

Advanced

CAC / Monthly Gross Profit per Customer

$100 / $20/month = 5 months

CPO — Cost Per Order

Core

Spend / Orders

$500 / 25 = $20 CPO

AOV — Average Order Value

Core

Total Revenue / Total Orders

$10,000 / 200 = $50 AOV

Revenue Per Session

Core

Total Revenue / Total Sessions

$10,000 / 5,000 = $2.00 RPS

Search Term Impression Share

Amazon

Your ST Impressions / Total ST Impressions x 100

5,000 / 20,000 x 100 = 25%

Bid Adjustment for Placement

Bidding

Base Bid x (1 + Modifier%)

$1.00 x (1 + 75%) = $1.75 adjusted bid

Target Impression Share Bid

Google Ads

Target IS x Avg CPC / Current IS

80% x $2.00 / 40% = $4.00