Paid Ads Funnel Calculator

Model CPM -> CTR -> CVR to estimate CPC, CPA, ROAS, and profit per 1,000 impressions (with margin and variable costs).

Most ad performance can be decomposed into a simple funnel: cost per 1,000 impressions (CPM) -> click-through rate (CTR) -> conversion rate (CVR) -> average order value (AOV).

This calculator turns those inputs into CPC, CPA, ROAS, break-even targets, and profit per 1,000 impressions using contribution margin (gross margin minus variable costs).

Prefer an explanation- Read the guide.
 
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Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
$8.52
CPM
$12
CTR
1.5%
CVR
3%
AOV
$80
Gross margin
60%
Payment fees
3%
Shipping & fulfillment
0%
Returns & refunds
0%

How to calculate

  1. Enter CPM, CTR, and CVR to define the media funnel.
  2. Enter AOV and gross margin plus variable costs (fees, shipping, returns).
  3. Review CPC, CPA, and ROAS, then compare to break-even ROAS and break-even CPA.
  4. Use the per-1,000-impressions view to spot whether the bottleneck is CPM, CTR, CVR, or economics.

Formula

Clicks/1000 = 1000 x CTR; CPC = CPM / (1000 x CTR); CPA = CPC / CVR; ROAS = revenue / spend; Profit/1000 = (revenue x contribution margin) - CPM
  • CTR and CVR are expressed as decimals for calculations (percent inputs are converted).
  • Contribution margin = gross margin - fees - shipping - returns (simplified).
  • Per-1,000-impressions view assumes attribution is consistent and conversions are attributable to ads.

FAQ

Why focus on profit per 1,000 impressions-
It reveals where performance is coming from. If profit is negative, you can see whether the lever is CPM, CTR, CVR, AOV, or contribution margin.
How is break-even CPA computed-
Break-even CPA is the maximum you can pay per conversion without losing money on variable economics: AOV x contribution margin.

Common mistakes

  • Comparing funnels across channels with different attribution windows.
  • Using revenue-based ROAS without margin and returns (profitability blind).
  • Optimizing CTR at the expense of intent (CVR drops).

Quick checks

  • Keep attribution model and window consistent when comparing campaigns.
  • Pair efficiency metrics (ROAS/CPA) with profit assumptions (margin, refunds, fees).
  • Validate tracking after site changes (pixels/events can silently break).