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PPC Math
John Williams edited this page Mar 23, 2026
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1 revision
| Metric | Formula | Example |
|---|---|---|
| CPA | Cost ÷ Conversions | $5,000 ÷ 100 = $50 |
| ROAS | Revenue ÷ Cost | $15,000 ÷ $5,000 = 3.0x |
| CTR | Clicks ÷ Impressions × 100 | 350 ÷ 10,000 = 3.5% |
| CPC | Cost ÷ Clicks | $5,000 ÷ 350 = $14.29 |
| CVR | Conversions ÷ Clicks × 100 | 100 ÷ 350 = 28.6% |
| CPM | (Cost ÷ Impressions) × 1,000 | ($5,000 ÷ 10,000) × 1,000 = $500 |
| Metric | Search | Shopping | Display | YouTube |
|---|---|---|---|---|
| CTR | 3-5% | 1-2% | 0.5-1% | 0.5-2% |
| CVR | 3-8% | 1-3% | 0.5-1% | 0.5-1% |
| CPC | $1-15 | $0.30-1.50 | $0.30-2 | $0.05-0.30 |
| Metric | Formula |
|---|---|
| Monthly projection | (MTD Spend ÷ Days Elapsed) × Days in Month |
| Remaining budget | Daily Budget × Days Remaining |
| Break-even ROAS | 1 ÷ Profit Margin |
| Target CPA | ACV × Acceptable CAC Ratio |
| Metric | Meaning | Action |
|---|---|---|
| IS > 90% | Dominating | Maintain |
| Budget Lost IS > 10% | Budget too low | Increase budget or narrow targeting |
| Rank Lost IS > 10% | QS/bids too low | Improve QS, increase bids |
| IS < 50% | Major gap | Full audit needed |
cost_micros ÷ 1,000,000 = actual currency
| cost_micros | Dollars |
|---|---|
| 45000000 | $45.00 |
| 1500000 | $1.50 |
| 100000000 | $100.00 |