Ad CPM and ROI Calculator
Turns an ad spend, impressions, clicks and revenue into the key campaign metrics: CPM, CPC, click through rate, ROAS and ROI.
Enter your numbers
Example: 45000
Example: 1200000
Example: 15000
Example: 180000
Recent
Formula
How the calculation works
CPM normalises the cost of an ad buy to a thousand impressions, which lets you compare campaigns of very different sizes on the same footing.
Click through rate reveals how compelling the creative is, because a cheap CPM is worthless if almost nobody who sees the ad bothers to click.
ROAS and ROI sit on top of these input metrics and answer the only question that finally matters, whether the money spent came back with more on top.
Common mistakes
- Treating ROAS as profit is the most common error, because ROAS counts gross revenue and ignores the cost of goods sold and platform fees that still have to come out of it.
When to use it
- Use it after each campaign to compare channels on CPM, CTR and ROAS at once and decide where the next taka of budget should go.
Worked example
Spending 45,000 taka for 1,200,000 impressions and 15,000 clicks that brought 180,000 taka gives a CPM of 37.5, a CPC of 3, a CTR of 1.25 percent, a ROAS of 4 and a ROI of 300 percent.
Common questions
What is the difference between ROAS and ROI?
ROAS is gross revenue divided by spend as a ratio, while ROI is the net profit after the spend expressed as a percentage, so ROI is always the more demanding measure of the two.
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