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AdWords ROI Calculator

Use the keyword calculator below to determine the best keyword bid prices for your AdWords campaign.

To get started, just enter the following metrics (be sure to fill in ALL fields). You can then play with the values to see how to improve the results and profitability of your AdWords campaign.
What is your monthly Pay-Per-Click budget?
$
How much does your product or service cost?
$
How much profit do you make per sale?
%
What is your estimated keyword price?
$
What percentage of visitors will convert from the ads?
%

Expected Results:

Conversion Target – Clicks per Month:
Conversion Target – New Clients Per Month:
Monthly Revenue:
$
Monthly Net Profit:
$
Estimated Customer Advertising Acquisition Cost:
$
Pre-Advertising Profit Per Sale:
$
Post Advertising Profit per Sale:
$
Return on Investment (ROI):
%
You are paying people to buy your product
Return on Ad Spend (ROAS):
%
1 Dollar Spent on advertising returns: cents
What’s the Calculator?

This keyword calculator will show you how to run a profitable AdWords account by paying the right amount for your keywords.  Rather than letting Google determine the amount you pay for each keyword using automate bidding, you should control your “cost-per-click” in order to make sure your bids are profitable.  Enter different amounts in the first five fields to the left to plan your campaign.

Click here to watch a video on how to use the AdWords ROI Calculator.

Keyword Return on Investment Calculator

The “keyword calculator” below will help demystify one of the most commonly asked questions about AdWords, which is: how much money should you spend for each keyword?  If each keyword gets a unique bid price, how can you possibly know whether one keyword is worth $10, and another keyword is worth $1?  The keyword calculator will show you the formula to keep your bid prices profitable.  This is a technique you can use throughout your entire AdWords account in order to avoid paying too much.

You can find the ideal keyword bid price by by filling in the first five fields in the keyword ROI calculator below: (1) in the first field, enter the amount of money that you plan to spend on AdWords for an entire month. Enter “2000,” for example, if you plan to spend $2,000 per month.  (2) In the next field, enter the amount of money that you charge for your product or service. For example, enter “500” if your average order size is $500.00. (3)  In the third field, enter your profit margin.  If you make a 25% profit on each unit sold, put “25” here.  (4) In the fourth field, enter your estimated bid price.  You will change many times to test different prices, so don’t worry about getting this right. You could try starting with “5” for example, to indicate a $5 keyword bid. (5) Finally, enter your anticipated “conversion rate.”  If you think that one out of every ten visitors will turn into a customer, for example, you should put “10” for 10%.

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