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.
Paid ads funnel: CPM, CTR, CVR -> CPC, CPA, ROAS (with profit)Creative + landing page playbook: diagnose CTR/CVR, then set break-even targetsPaid ads measurement hub: ROAS, MER, marginal ROAS, and incrementalityCPC (Cost Per Click): definition, formula, and how to calculate
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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
- Enter CPM, CTR, and CVR to define the media funnel.
- Enter AOV and gross margin plus variable costs (fees, shipping, returns).
- Review CPC, CPA, and ROAS, then compare to break-even ROAS and break-even CPA.
- 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).
Related calculators
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Calculate Return on Ad Spend (ROAS) and estimate contribution profit after ad spend.
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Break-even ROAS Calculator
Estimate the break-even ROAS based on contribution margin assumptions.
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Target ROAS Calculator
Estimate a target ROAS to cover variable costs plus a desired margin buffer.
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ROI Calculator
Calculate Return on Investment (ROI) for a campaign or project.
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Incrementality Lift Calculator
Estimate incremental conversions, incremental ROAS, and incremental profit from a holdout test.
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Marginal ROAS Calculator
Estimate diminishing returns and find the profit-maximizing ad spend from a simple response curve.
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).