Find out with the Human Level calculator if your Google Ads campaign will bring you a positive return on investment (ROI) or not by entering the different data in each field based on your campaign management costs, CPC estimation and Google Analytics data.
Terms used in the Google Ads ROI calculator
What is the ROI in a Google Ads campaign?
ROI or return on investment is a financial term that measures the economic value generated in relation to the investment made. ROI measures the profitability of our investment in a marketing action, that is, its capacity to generate value. ROI is calculated according to the following formula:
ROI = (Revenue – Investment) / Investment
What are the monthly investment and management fees?
The monthly investment is the money invested directly in Google Ads. In general, Google Ads campaigns are managed through a budget for which a maximum monthly investment is established. This is money that goes directly to Google.
Management fees, on the other hand, are the fees received by the consultant or agency responsible for managing the campaign. If you manage your own Google Ads campaign, then the management fees will be 0€.
What is conversion
Where do I get the average ticket data from?
The average ticket is a data that can be consulted in the E-Commerce section of Google Analytics. It corresponds to the average amount of each sale on our website. If we multiply the average ticket by the total number of transactions, we should obtain the total sales turnover.
What is CPA or cost per acquisition
Cost per acquisition or CPA is the total cost invested in promoting a website to achieve a sale. To calculate the CPA in a Google Ads campaign, the total cost of the campaign (both invested and management fees) is divided by the total number of conversions. In the case of recurring purchases (a customer makes on average more than one purchase in a given period of time) the CPA is lower than the customer acquisition cost or CAC as it would be equivalent to the acquisition cost of this customer divided by the average number of transactions per customer.
What is customer acquisition cost or CAC?
The cost of customer acquisition is the total cost invested in promoting a website to acquire a new customer. In the worst case, if the acquired customer only buys once, it corresponds to the CPA or cost per acquisition.