# Top 13 Google Ads Formula with Example for Beginners to Experts

The formula is a quick way to calculate the performance of your campaigns. Here are the few frequently used PPC formulas I have shared which are easy to remember and understand the logic. It would definitely be going to help you in calculating your performance of Google Ads.

Also Read :**What is Google Ads?****Google Ads Ultimate Glossary: 50+ Terms Described**

So let’s move towards learning the all frequently used calculations of **Google Ads Campaigns** or PPC Campaigns using Google Ads Formulas: –

### 1. CPC Formula / Cost Per Click Formula

E.g. If I have spent Rs. 1000 & got 500 clicks, then my **Cost Per Click Formula** / CPC Formula would be;

**CPC**=1000/500 = Rs.2

Means, My Cost Per Click would be Rs. 2

### 2. CPA Formula / Cost Per Acquisition Formula

E.g. If I have spent Rs. 1000 & got 10 Conversions, then my **Cost Per Aquisition Formula** would be;

CPA=1000/10 = Rs.100

Means, My Cost Per Acquisition would be Rs.100 or I can say, it costs Rs.100 in a conversion.

### 3. CPM Formula / Cost Per Thousand Impressions Formula

E.g. If I have spent Rs. 1,000 & got 10,000 Impressions, then my **CPM Formula** would be;

CPM = 1000/ 10000 = Rs.0.1

### 4. CTR Formula / Click Through Rate Formula

E.g. If I have got 500 Clicks & 10,000 Impressions, then my **Click Through Rate Formula** would be;

=> CTR = 500/ 10000 *100

=> CTR = 0.05*100

=> CTR = 5%

### 5. CR Formula / Conversion Rate Formula

E.g. If I have got 10 Conversions by getting 100 Clicks, then my **CR Formula** would be;

=> CR = 10/100 * 100

=> CR = 0.1 * 100

=> CR = 10%

### 6. ROI Formula/ Return on Investment Formula

ROI calculated on the basis of your total investment on the product including the manufacturing, transportation, taxes & all other miscellaneous costs. So here, As a spent, the calculation will contain the advertising cost along with the manufacturing and other costs.

E.g. If I have got a revenue of Rs. 10,000 on spending a total of Rs. 1000 on Google Advertising & Rs.4000 on the manufacturing & other investment of my product, then my **ROI Formula** would be;

**ROI = (Total Revenue – (Google Advertising Costs + Product Manufacturing & Other Costs)) / (Google Advertising Costs + Product Manufacturing & Other Costs) * 100**

=> ROI = (10000 – (1000+4000)) / (1000+4000) * 100

=> ROI = (10000 – 5000)/ 5000 * 100

=> ROI = 5000/ 5000 * 100

=> ROI = 1*100

=> ROI = 100 %

**Let’s understand it with another example**

E.g. If I have got a revenue of Rs. 1,000 on spending a total of Rs. 100 on Google Advertising & Rs.500 on the manufacturing & other investment of my product, then my ROI would be;

**ROI = (Total Revenue – (Google Advertising Costs + Product Manufacturing & Other Costs)) / (Google Advertising Costs + Product Manufacturing & Other Costs) * 100**

=> ROI = (1000 – (100+500)) / (100+500) * 100

=> ROI = (1000 – 600)/ 600 * 100

=> ROI = 400/ 600 * 100

=> ROI = 0.67*100

=> ROI = 67 %

### 7. ROAS Formula/ Return **on Ad Spend** Formula

E.g. If I have got a revenue of Rs. 10,000 on spending a total of Rs. 1,000, then my **ROAS Formula** would be;

=> ROAS = 10000/ 1000

=> ROAS = 10

That means, in ratio, it is **10:1**. So, I can say that my ROAS is 10 times of my spending amounts on running **Google Ads Campaigns.**

### 8. Quality Score Formula

QS = The combination of Expected Click Through Rate, Keywords Relevancy & Landing Page Experience

**9. Ad Rank Formula**

E.g. If I am willing to pay a maximum of Rs. 5 for a click & my Quality Score is 10, then my **Ad Rank Formula** would be;

=> Ad Rank = 5*10

=> Ad Rank = 50

So, I can say that my Ad Rank is 50.

### 10. Actual CPC Formula

Actual CPC = Ad Rank of your nearest competitor/ Your Quality Score +0.01 $

### 11. Total Cost Formula

Total Cost = Total Clicks * CPC

### 12. Cost Formula (You can also Calculate like this)

cost = conversion rate * profit margin

### 13. Conversion ratio Formula

Conversion ratio = No of conversions/ No of clicks*100

##### Hope you just learned few new things from this blog. Your response will inspire me to share more knowledge with you using my experience and skill. So please like, share & leave your comment below. You can also Contact Us for any query or services such as Google Ads or Content Writing.

### Related Posts

#### Don’t Miss these 8 Things while Creating Ads on Google Ads

#### How Google Search Ads is Beneficial for Your Business

#### What is Google AdWords?

#### About Author

##### Er Megha Agrawal

I am into Digital Marketing since 5+ years and worked on multiple projects for the same niche. It's my view that sharing the knowledge head you towards learning new things and enhancing yourself. So here, I used to write articles based on my personal experience only. And I hope you will like & learn more by reading these all. Thanks!