How to Use the Google Ads ROI Calculator
- Monthly ad budget: what you plan to spend with Google each month.
- Average cost per click: from your account, or Keyword Planner estimates for new campaigns.
- Landing page conversion rate: the share of clicks that become leads (calls, forms or bookings).
- Close rate: the share of leads that become paying customers.
- Average revenue per customer: the value of a typical sale, or lifetime value if customers buy repeatedly.
- Gross margin (optional): set it below 100% to see profit after costs, not just revenue.
Results update instantly. All figures are in US dollars.
How the Math Works
- Clicks = budget ÷ cost per click
- Leads = clicks × conversion rate
- Customers = leads × close rate
- Revenue = customers × revenue per customer
- ROAS = revenue ÷ ad spend
- ROI = (revenue × margin − ad spend) ÷ ad spend
- Break-even CPC = the cost per click at which profit after ad spend is zero
These are projections. Real campaigns vary week to week, especially in the first one to two months while Google’s bidding learns.
Four Levers That Change the Outcome
Play with the inputs and you’ll see that budget is rarely the most powerful lever.
1. Conversion rate
Raising your landing page conversion rate from 4% to 8% doubles leads without spending more. Dedicated landing pages, clear offers and fast mobile pages usually beat sending ads to the homepage. Our Sales Funnels & CRO service focuses on exactly this.
2. Cost per click
Tighter keyword targeting, negative keywords and better Quality Scores lower what you pay per click. Weekly search term reviews are where much of the savings come from.
3. Close rate
Fast follow-up has a big impact on how many leads become customers. Responding within minutes, rather than hours, is one of the cheapest improvements you can make. See our Lead Generation service.
4. Customer value
Upsells, maintenance plans and repeat purchases raise revenue per customer, which lets you bid more competitively than rivals.
Want Real Numbers Instead of Estimates?
If you’re already running Google Ads, we’ll audit your account for free and show where budget is being wasted and what your realistic cost per lead could be. Learn more about our Google Ads management.