Google Ads ROI Calculator

How the calculator works

The calculator follows the path from ad click to paying customer, one step at a time:

1. Visitors = budget ÷ average cost per click
2. Inquiries = visitors × conversion rate
3. New customers = inquiries × close rate
4. Revenue = new customers × value per customer
5. ROAS = revenue ÷ ad spend, ROI = (revenue − ad spend) ÷ ad spend

The most useful figure is often the break-even CPC: value per customer × conversion rate × close rate. As long as your real cost per click stays below it, every click pays for itself.

Worked example

With the default values (€1,000 budget, €1.50 per click, 5 % conversion rate, 30 % close rate and €500 per customer) the maths looks like this: €1,000 ÷ €1.50 = about 667 visitors. 5 % of them send an inquiry, so about 33 inquiries. If 30 % of those become customers, that is 10 new customers and €5,000 in revenue. ROAS is 5.0, ROI 400 %, and the break-even CPC is €500 × 5 % × 30 % = €7.50.

These are example inputs, not industry benchmarks. Replace them with your own figures: the result is only as good as the numbers you enter.

Where to find your own numbers

• Cost per click: in Google Ads under Campaigns or Keywords (column “Avg. CPC”). No account yet? Google’s Keyword Planner shows bid ranges for your keywords and region.
• Conversion rate: in Google Ads (column “Conv. rate”), provided conversion tracking is set up correctly. Without tracking this figure is missing, and fixing that comes first.
• Close rate: from your own records: of your last 20 inquiries, how many became paying customers?
• Value per customer: average order value × number of orders per customer. With repeat business (dentists, hairdressers, wholesalers) the customer value is far higher than the first order.

Four levers that improve ROI

• Higher conversion rate: a fast, clear landing page with one goal and a visible phone or WhatsApp button. See our web design packages.
• Lower cost per click: tightly themed ad groups, matching ad copy and negative keywords raise the Quality Score and lower what you pay per click.
• Higher close rate: answer inquiries quickly. Many leads are lost simply because nobody calls back the same day.
• Higher customer value: follow-up offers, repeat orders and reviews turn a one-off sale into a lasting customer relationship.

Limits of any ROI calculation

The calculator assumes stable averages. In practice, cost per click changes with competition and season, new campaigns need a learning phase of a few weeks, and under EU consent rules not every conversion can be measured. Treat the result as a planning tool and compare it with real data after the first months.