TikTok Ads Cost Calculator
Use our free TikTok Ads budget analysis tool to estimate costs, Return on Investment (ROI), and Return on Ad Spend (ROAS) from your TikTok 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) TikTok 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 signing 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 through your sales offer.
What is Up-Sell Take Rate?
It's an estimate of the percentage of people you expect to purchase your product or service from your TikTok Ads campaign.
What is Return On Marketing Investment?
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 TikTok 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 TikTok 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 TikTok PPC) by the total spend.ROAS is an indicator of return on investment in advertising and is similar to ROMI. Calculate ROAS using the following formula:ROAS = income from marketing / marketing expendituresSuch a metric is 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%.