When it comes to marketing strategies, Google Ad campaigns can be a hit or miss. Fortunately, there’s a way you can determine if your campaign will be successful or not before you even spend a dime: the Google Ads ROI Calculator.

The Google Ads ROI Calculator helps you save time and money so you can figure out more effective ways to use your marketing budget. All you need to do is fill in the highlighted fields. The calculator will let you know whether your Google Ads will be a smart investment.

How does the Google ADs ROI Calculator work?

To determine whether your Google Ads campaign will be a good investment, you’ll need to input a few things into the Google Ads ROI Calculator including:

1. Your monthly budget
2. Estimated cost per click
3. Estimated click-through rate
4. Estimated landing page conversion rate
5. Lead to customer rate
6. Estimated value per new customer

Start by filling in your estimated monthly budget for your Google Ads campaign. It’s a good idea to start small. You can always increase the amount gradually if your results don’t indicate a positive return on investment.

From there, add the estimated cost per click for your Google Ads campaign keywords. You can find a few target keywords using Google’s Keyword Planner, which will display your estimated cost per click. 

Enter your click-through rate. You can figure this out using industry standards or applying trends based on previous data.

You’ll also enter your estimated landing page conversion rate. Your conversion rate is measured by form submissions from your destination landing page and the number of calls your business receives divided by the number of clicks.

Enter the average percentage of your business’ leads that usually turn into customers. For example, let’s say your business receives 100 calls and emails a month from potential customers. If 25 of these potential customers turn into converted customers, your business’ lead to customer rate will be 25%.

Finally, you’ll want to input your estimated value per new customer. If you’re marketing an ongoing service instead of a product, you’ll want to make sure that you’re estimating the lifetime value of your customers.

After inputting this data, the Google Ads ROI Calculator will determine your final return on investment for your Google Ad campaign. Keep in mind that Google Ad campaigns need to see a return on investment of at least 200% because they need to cover the cost of running the ads.