This calculator measures your ROI (return on investment) if you are using the CPM (cost per thousand) impressions advertising model common to most banner and button ad campaigns.
Total monthly impressions from your CPM advertising
This section of the tool lets you put in last month's number to calculate last month's ROI. You can also project next month's number to calculate next month's potential ROI.
Estimated average CPM
Here you can put in last month's number to calculate last month's ROI. You can also project next month's number to calculate next month's potential ROI.
Click-through rate
Your click-through rate is the percentage of actual click-throughs per number of impressions. For example, if you pay for 5,000 impressions and get 50 click-throughs, your click-through rate would be 1%. Enter a percent number, not a fraction. For instance, for 10% enter 10, not 0.10.
Conversion Rate
Your conversion rate is the percentage of visitors who come to your site from a banner or button and convert into customers, for instance, by making a purchase. Conversion rates vary by company, but an average conversion rate you can use as a test would be 2-3%. Enter a percent number, not a fraction. For instance, for 10% enter 10, not 0.10.
Average profit per conversion
Profit refers to the amount of money you earn from a sale. For example, if you sell a software package for $100 and it only cost you $10, your profit is $90. You must supply this number from your own records by estimating the average amount of profit you make from each conversion.
