Facebook Ads Cost Calculator
Use our free Facebook Ads budget analysis tool to estimate costs, Return on Investment (ROI), and Return on Ad Spend (ROAS) from your Facebook Ad campaigns.
Frequently Asked Questions
What is Cost Per Click?
Cost Per Click (CPC) refers to the actual price you pay for each click in your pay-per-click (PPC) Facebook marketing campaigns. See how to calculate CPC.
What is Lead Conversion Rate?
Lead conversion rate is the percentage of leads that become customers.
What is a Qualified Lead Percentage?
Qualified leads are those continuing to engage with your messages after they sign up for your email or messenger lists. Use the open rates of “welcome” emails, or follow-up call response rates to estimate the qualified lead percentage.
What is Email Sequence Completion Rate?
Email Sequence Completion Rate is the percentage of people who engage with your messages throughout your sales offer funnel.
What is Up-Sell Take Rate?
Up-sell Take Rate estimates the percentage of people you expect to purchase your product or service from your Facebook Ads campaign.
What is Return On Marketing Investment?
Return on marketing investment or ROMI is a metric used in online marketing to measure a marketing campaign's effectiveness. It examines the results concerning the intended marketing objective. ROMI is a subcategory of return on investment (ROI) because the cost is specific to marketing.As a percentage ratio, ROMI demonstrates profitability or waste of an initial sum of money invested. Calculate ROMI with the following formula:ROMI = ((income from marketing – cost of goods – marketing expenditures) / marketing expenditures) * 100.If ROMI is less than 100%, then marketing investments were wasteful. If its more than 100%, they were profitable.For example, we need to understand the effectiveness of a Facebook Ads campaign. Monthly spending was $2,400, and the campaign generated sales of $31,200. Taking into account the cost of goods sold equals $24,960, calculate the effectiveness of the advertising campaign with the formula:ROMI = ((31,200 – 24,960 – 2,400) / 2,400) * 100 = 160%In this case, the ROMI equals 160% for the Facebook Ads campaign. That means that the campaign is profitable. The campaign, therefore, generated $1.60 of income for every dollar spent on marketing.
What is Return On Ad Spend?
Return on ad spend (ROAS) is one of the most specific revenue-based metrics to measure. To calculate ROAS, divide the total revenue generated in a particular marketing channel (like Facebook PPC) by the total spend.ROAS is an indicator of return on investment in advertising, and it is mostly similar to ROMI. Calculate ROAS using the following formula:ROAS = income from marketing / marketing expendituresSuch a metric is very similar to the ROMI formula without deducting the cost of goods and advertising expenditures.For example:ROAS = 31,200 / 2,400 = 13For each dollar spent, we gained $13, which at first glance seems like a lot, although from the return on marketing investment calculation, we know that ROMI is only 160%.