Being a successful internet marketer or online business owner requires some basic understanding of the metrics used to measure your online performance.

Whether you need a refresher or just learning about online marketing, these calculations will help you understand some of the most common terms, acronyms, and calculations used for measuring your data.

CPA/CPL/CPS

#### CPA (Cost Per Action)

Example: \$100 in ads generated 4 orders (\$100 spent/4 orders) = \$25 CPA.

CPC

#### CPC (Cost Per Click)

Calculates the cost per click in advertising.

Example: Spent \$100 and received 50 clicks (\$100/50 clicks) = = \$2.00 average CPC.

CPM

#### CPM (Cost Per Thousand)

Calculates the cost per thousand impressions for a website.

Example: Received 15,000 impressions for \$20 (\$2 in ads / (15,000 impressions/1,000) = \$1.30 CPM.
Online CPM Calculator

Conversion Rate

#### CR (Conversion Rate)

Example: 100 orders from 500 clicks (100 orders/500 clicks) = 20% CR.

Click-Through Rate (CTR)

#### CTR (Click Through Rate)

Calculates the how many people clicked through to view a page.

Example: 100 clicks from 500 impressions (100 clicks/5000 impressions) = 2% CTR.

Return on Investment (ROI)

#### ROI (Return on Investment)

Calculates how much your spending returns on a percentage basis.

Example: \$100 in revenue from \$40 in advertising ((\$100 revenue – \$40 in ads) / \$40 in ads) = 150% ROI.