Ads Conversion Value Calculator

Source: https://support.google.com/google-ads/answer/11459091

Demo calculations:

Conversion tracking is essential for properly managing online advertising campaigns. However, it can be confusing how to determine the proper conversion value to set for each conversion event.
This calculator will help you determine your conversion value.
If your conversion value is $1,000 and your cost per conversion is $100, you have a Return on Ad Spend (ROAS) of 10. Anyone would be happy with a ROAS of 10 because that means you’re generating $10 in conversion value for every $1 spent on advertising. However, if your conversion value is inaccurate, your ROAS calculation can be wildly inaccurate.

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Conversion Stage/Event Name*

Name your conversion, just for your notes. Think of this as a category or segment of your target customers and the action/event they take to become your new lead. Examples for a dentist: “booked teeth cleaning appointment” or “braces phone call inquiry”. Examples for a roofing company: “roof repair phone call” or “hail damage roof insurance claim inquiry form” or “roof replacement pricing calculator submission”. Examples for an eCommerce fitness company: “water bottle sale” or “treadmill sale” or “latest gym fashion newsletter signup” or “clearance notifications signup”

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Lead Source

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Lead ID

Lead to Sale Conversion Rate (%)*

Please enter a number from .01 to 100.

The probability of reaching a sale from this conversion event/stage. What percentage of your conversions (e.g. lead from an online inquiry form submission, booked an appointment, or newsletter signup) actually become paying customers? If your conversion is a ‘sale’ type, then enter 100%.

Based on revenue instead of profit?*

Yes

Are any of these true?… 1) Does your profit margin vary so widely for each sale that you cannot determine a typical profit margin? 2) Do you prefer high growth over accurate reporting (e.g. user growth over profitability)? 3) Do you prefer higher-ticket sales opportunities even if their profit margin is significantly less or their cost per click (CPC) is significantly higher?

Typical Initial Sale Amount*

Please enter a number from 0 to 10000000.

If your conversion event is an actual sale, what’s your typical initial sale amount from this event? If your conversion is a lead, what is the typical initial sale amount of a converted lead? If you are a dentist, you set your conversion event to “teeth cleaning appointment”, and your typical revenue from that service is $300, then enter $300. If your conversion is informational instead of transactional—like signing up for your email newsletter—then enter $0.

Profit Margin on Initial Sale*

Please enter a number from 0 to 100.

What is your typical profit margin for initial sales from this event? For example, a teeth cleaning lead might result in an initial sale of $300 with a profit margin of 40%. If you sold a treadmill, that profit margin might be 15%.

Typical Future Additional Sales*

Please enter a number from 0 to 10000000.

What is the average value of all additional sales (LTV minus your typical initial sale amount)? If you only expect an initial purchase and no subsequent purchases, enter $0.

Profit Margin on Future Sales*

Please enter a number from 0 to 100.

What is your typical profit margin on subsequent purchases during the customer’s lifetime?

Total Revenue*

Revenue from a sale

Weighted Profit Rate*

Just FYI

Total Profit*

Lifetime Value (LTV) of a conversion

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Profit-Based Conversion Value*

LTV × Conversion Rate

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Revenue-Based Conversion Value*

Total Revenue × Conversion Rate

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Result if Profit*

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Result if Revenue*

Ads Conversion Value Calculator

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