What is it?
This free tool is designed specifically for digital marketers, agencies, and business owners who want to forecast the profitability of their marketing campaigns. Forget guessing – our interactive calculator helps you enter key data and instantly see how different metrics affect your profit.
Why do you need it?
- Reduce risks: Understand what your cost per click (CPC), conversion rate or ad budget needs to be for the campaign to be profitable.
- Make smart decisions: Before launching a campaign, you can test different scenarios and choose the most profitable strategy.
- Analyze long-term potential: See how your customer lifetime value (CLV) relates to customer acquisition cost (CAC) to understand the campaign’s long-term profitability.
How to use the tool?
1. Enter basic data
Start with the campaign’s baseline data. The more accurate your data, the more accurate the forecast.
- Campaign type: Choose whether it is a cost-per-click (CPC) or impression-based (CPM) campaign.
- Ad cost: Enter your expected CPC or CPM.
- Conversion rate: Forecast what percentage of visitors will make a purchase or complete another desired action.
- Budget and price: Add the campaign budget and the price of the product or service.
- Additional costs: Include other costs, such as agency or designer fees.
2. Play with the metrics
The tool is interactive. By changing the numbers, you can see in real-time how the results change. This gives you valuable insights to help optimize your campaign.
- Charts: Track how profit changes according to CPC/CPM and conversion rate. This helps find the break-even point from which the campaign becomes profitable.
- Long-term metrics: If you want to see a long-term forecast, click the “Show long-term metrics” button. Choose whether the revenue is one-time or monthly, and enter the customer lifetime value (CLV) if necessary.
3. Monitor critical metrics
The critical metrics panel gives you a quick overview of the limits that are important for your campaign.
- Maximum CPC/CPM: This is the highest allowed cost per click or impression at which your campaign remains profitable.
- Minimum conversion rate: The percentage at which the campaign investment starts to pay off.
4. Download and share results
If you are satisfied with the forecast, you can download the results as an HTML file to forward or archive. You can also save the report as a PDF using your browser’s print function.
Start forecasting now and take your digital marketing to the next level!