CPC & ROAS Calculator

What is CPC (Cost Per Click)?

CPC is the average amount you pay each time someone clicks your ad. It is calculated by dividing your total ad spend by the total number of clicks. A lower CPC means you are getting more traffic for your budget -- but CPC alone does not tell the full story. A $0.50 click that never converts is worth less than a $5.00 click that turns into a $500 sale.

Formula: CPC = Total Ad Spend / Total Clicks

What is ROAS (Return on Ad Spend)?

ROAS measures revenue generated for every dollar spent on advertising. A ROAS of 4x means you earn $4 for every $1 spent. It is the single most important metric for determining if your ad campaigns are profitable. Most businesses need a minimum ROAS of 3x to stay profitable after accounting for product costs, overhead, and margins.

Formula: ROAS = Revenue from Ads / Total Ad Spend

Why CPC and ROAS work together

CPC tells you how efficiently you are buying traffic. ROAS tells you how effectively that traffic converts into revenue. You can have a low CPC but a terrible ROAS (cheap clicks that do not buy), or a high CPC with excellent ROAS (expensive clicks from qualified buyers). The best campaigns optimize both: competitive CPC with strong ROAS.