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

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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.

### 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

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;

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

### 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