GOOGLE ADS FORMULA LIST

Formula To Calculate CPC or Cost Per Click In Google Ads

CPC stands for “cost per click” inside the context of Google commercials and any other form of paid advertising module. it is a metric that represents the quantity of cash you pay whenever someone clicks on your advertisements shown on SERP. In other phrases, CPC is the cost incurred by using the advertiser for each click on their commercial

Cost Per Click = Total Spend / Total Number of Clicks

E.g. If I have spent Rs. 1000 & got 500 clicks, then my Cost Per Click Formula / CPC Formula would be;

CPC=1000/500 = Rs.2

2. CPA Formula / Cost Per Acquisition Formula

CPA stands for “fee per Acquisition” within the context of Google ads. it's far a metric that represents the average value an advertiser is inclined to pay for obtaining a consumer or generating a conversion. In other words, CPA measures the price of each favour motion, which includes a sale, lead, or other conversions.

Cost Per Acquisition = Total Cost / Total Number of Conversions

E.g. If I have spent Rs. 1000 & got 10 Conversions, then my Cost Per Acquisition Formula would be;

CPA=1000/10 = Rs.100

3. CPM Formula / Cost Per Thousand Impressions Formula

In Google ads, CPM stands for “fee in step with Mille,” where “mille” is Latin for thousand. CPM is a bidding approach and pricing version in online advertising that permits advertisers to bid for their ads to be proven one thousand instances (impressions) on a publisher’s internet site or platform. It is typically utilized in display and video marketing campaigns.

CPM (Cost Per Thousand Impressions) = Total Cost / Total Number of Impressions

E.g. If I have spent Rs. 1,000 & got 10,000 Impressions, then my CPM Formula would be;

CPM = 1000/ 10000 = Rs.0.1

4. CTR Formula / Click Through Rate Formula

CTR stands for “click-through rate” in Google Ads. This is an important metric to measure the percentage of people who click on your ad after seeing it. Click value is calculated by dividing the number of clicks your ad received by the number of impressions (impressions) and dividing by 100 to get the percentage.

Click Through Rate = Total Number of Clicks / Total Number of Impressions * 100

E.g. If I have got 500 Clicks & 10,000 Impressions, then my Click Through Rate Formula would be;

=> Click Through Rate = 500/ 10000 100 => CTR = 0.05100 => CTR = 5%

5. CR Formula / Conversion Rate Formula

In the context of Google Ads, “CR” typically refers to “Conversion Rate.” Conversion Rate is a metric that measures the percentage of users who take a desired action, or “convert,” after clicking on an ad. This action can vary depending on the goals of the advertising campaign and may include activities such as making a purchase, filling out a form, signing up for a newsletter, or any other predefined action that represents a valuable outcome for the advertiser.

Formula To Calculate Conversion Rate in Google Ads

Conversion Rate = Total Number of Conversions/ Total Number of Clicks *100

E.g. If I have got 10 Conversions by getting 100 Clicks, then my CR Formula would be;

=> CR = 10/100 100 => CR = 0.1 100 => CR = 10%

6. ROI Formula/ Return on Investment Formula

ROI stands for “Return on Investment” in the context of Google Ads. It is a metric that measures the profitability of an advertising campaign by evaluating the ratio of the net profit generated from the campaign to the cost of the campaign. ROI is expressed as a percentage or a ratio, and it helps advertisers assess the effectiveness of their advertising efforts in terms of generating revenue or achieving specific business goals.

ROI = (Total Revenue-Total Spend) / Total Spend *100

For if I have a revenue of Rs. 10,000 on spending a total of Rs. 1000 on Google Advertising & Rs.4000 on the manufacturing & other investments of my product, then my ROI Formula would be;

ROI = (Total Revenue – (Google Advertising Costs + Product Manufacturing & Other Costs)) / (Google Advertising Costs + Product Manufacturing & Other Costs) * 100

=> ROI = (10000 – (1000+4000)) / (1000+4000) 100 => ROI = (10000 – 5000)/ 5000 100 => ROI = 5000/ 5000 100 => ROI = 1100 => ROI = 100 %

Let’s understand this Google Ads PPC Formula with another example

For if I have got a revenue of Rs. 1,000 on spending a total of Rs. 100 on Google Advertising & Rs.500 on the manufacturing & other investments of my product, then my ROI would be;

ROI = (Total Revenue – (Google Advertising Costs + Product Manufacturing & Other Costs)) / (Google Advertising Costs + Product Manufacturing & Other Costs) * 100

=> ROI = (1000 – (100+500)) / (100+500) 100 => ROI = (1000 – 600)/ 600 100 => ROI = 400/ 600 100 => ROI = 0.67100 => ROI = 67 %

7. ROAS Formula/ Return on Ad Spend Formula

ROAS stands for “Return on Ad Spend” in the context of Google Ads. It is a metric that measures the revenue generated from advertising efforts relative to the amount spent on those advertisements. ROAS is expressed as a ratio or percentage and is used by advertisers to evaluate the effectiveness of their advertising campaigns in terms of generating revenue.

ROAS = Total Revenue/ Total Spend

For if I have a revenue of Rs. 10,000 on spending a total of Rs. 1,000, then my ROAS Formula would be;

=> ROAS = 10000/ 1000 => ROAS = 10