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PPC profitability guide

How to Calculate PPC ROI

ROI shows whether a campaign creates business profit after every cost, while ROAS alone can hide weak margins. Calculate it from revenue and total campaign cost.

The PPC ROI Formula

Core formulaROI = (Revenue − Total Cost) ÷ Total Cost × 100

Total cost is the part many teams miss. It includes ad spend, management or agency fees, and variable delivery or fulfillment cost. A campaign with $9,600 in revenue and $7,900 in total cost returns ROI of about 21.5%.

Calculate PPC ROI Step by Step

  1. Add up revenue. Use attributed conversion value from the campaign.
  2. Add every cost. Include ad spend, management fees, and variable delivery cost.
  3. Subtract cost from revenue. The result is profit.
  4. Divide profit by cost and multiply by 100. That is your ROI percentage.

Worked Example

A campaign spends $5,000 on ads, $500 on management, and $2,400 on delivery for 80 conversions worth $120 each. Revenue is $9,600 and total cost is $7,900, so profit is $1,700 and ROI is roughly 21.5%. The same campaign might report a much higher ROAS, which is why ROI is the better business question.

ROI vs ROAS

ROAS compares revenue with ad spend only, so it flatters campaigns with high product or delivery cost. ROI includes those costs and answers whether the campaign is worth running. Use ROAS for bidding and channel comparison, and ROI for business approval.

Check profitability

Use the free PPC ROI Calculator to measure profit after ad spend, management, and delivery costs.

Open the calculator

Frequently Asked Questions

What is the formula for PPC ROI?

ROI equals revenue minus total campaign cost, divided by total cost, multiplied by 100. Total cost includes ad spend, management fees, and variable delivery costs, not just platform spend.

How is PPC ROI different from ROAS?

ROAS compares attributed revenue with ad spend only. ROI includes the wider set of costs, so a campaign can show strong ROAS while delivering weak business profit.

What counts as campaign cost for ROI?

Include platform ad spend, management or agency fees, fulfillment or delivery cost, and any variable per-order expense. Fixed overhead is usually excluded unless you intentionally allocate it.

What is a good PPC ROI?

It depends on margin, cash flow, and business targets. Compare the result with your required return and break-even ROAS rather than treating a single percentage as universal.