CPC, CTR and CPM: formulas and their link to ROAS
Understand how impression cost, click-through rate, and cost per click fit together, and why cheap traffic may not be profitable.
10 focused guides
Traffic & conversion metrics
Follow the path from an impression to a sale. Keep the denominator visible at each step, then work backward from your cost-based goal to the traffic performance it would require.
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Conversion rate and ROAS: match the denominator
Separate click-based, session-based, and lead-based conversion rates and calculate their effect on advertising returns.
Average order value and ROAS: check the extra costs
Calculate AOV and separate revenue gains from the extra costs, discounts, and conversion changes behind larger orders.
CAC vs CPA: customers, orders and acquisition costs
Define customer acquisition cost separately from cost per action or order, with a new-customer example and cost-scope checklist.
Lead generation ROAS: model lead value honestly
Use observed close rates and customer value to model leads, while separating estimates from realized revenue and contribution.
Customer lifetime value and acquisition payback
Build a bounded customer-value model using observed contribution, repeat purchases, and acquisition payback instead of gross revenue alone.
Break-even CPC calculator: an affordable click cost
Calculate an affordable CPC from orders per click and order contribution, then reserve a contribution target before bidding.
Maximum CPM calculator for a target ROAS
Estimate an affordable impression cost using CTR, order rate, and order value, with consistent percentage units.
Required conversion rate calculator for target ROAS
Solve for the required orders-per-click rate from CPC, average order value, and a ROAS target, and check whether the goal is realistic.
Required AOV calculator for a target ROAS
Work backward from acquisition cost or click economics to the order value required for a ROAS goal, then check margin and volume.
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ROAS fundamentals · Margins & acquisition costs · Attribution & data quality · Budgets, offers & experiments