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 (Cost Per Action)
Calculates your cost per order, lead, download, etc (aka CPL and CPS).
Example: $100 in ads generated 4 orders ($100 spent/4 orders) = $25 CPA.
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 (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
CR (Conversion Rate)
Calculates the number of people who made an action (download, order, etc.).
Example: 100 orders from 500 clicks (100 orders/500 clicks) = 20% CR.
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.
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.