What is this?
This free tool is designed specifically for digital marketers, agencies, and business owners who want to predict the profitability of their marketing campaigns. Forget the guesswork – our interactive calculator helps you enter key data and instantly see how different metrics will impact your bottom line.
Why do you need this?
- Reduce risks: Understand what your cost per click (CPC), conversion rate, or advertising budget needs to be for your 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 your customer acquisition cost (CAC) to understand the long-term profitability of your campaign.
How to use the tool?
1. Enter basic information
Start with basic campaign data. The more detailed your data, the more accurate your forecast will be.
- Campaign type: Choose whether it is a cost-per-click (CPC) or cost-per-impression (CPM) campaign.
- Advertising Cost: Enter your expected CPC or CPM.
- Conversion rate: A prediction of what percentage of visitors will make a purchase or take another desired action.
- Budget and price: Add the campaign budget and the price of the product or service.
- Additional costs: Also consider other costs, such as agency or designer fees.
2. Play with indicators
The tool is interactive. As you change the numbers, you can see how the results change in real time. This gives you valuable insights that can help you optimize your campaign.
- Charts: Track how your profit changes based on CPC/CPM and conversion rate. This helps you find the break-even point at which your campaign starts to generate profit.
- 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. Track critical metrics
The critical metrics panel gives you a quick overview of what boundaries are important for your campaign.
- Maximum CPC/CPM: This is the highest allowed price per click or impression at which your campaign is still profitable.
- Minimum conversion rate: The percentage at which a campaign investment starts to pay for itself.
4. Download and share the results
Once you are satisfied with the forecast, you can download the results as an HTML file that you can forward or archive. You can also use your browser's print function to save the report as a PDF.
Start forecasting now and take your digital marketing to the next level!