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Advertising Funnel Costs & Repeat-Order Revenue

Connect impressions, clicks, leads and customers with campaign cost, revenue return and an explicit repeat-order revenue assumption.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

For 100,000 impressions, 1,000 clicks, 100 leads and 10 customers, a $500 campaign costs $0.50 per click and $50 per customer. At $2,000 revenue, revenue-based ROI is 300%.

CTR = clicks / impressions; cost per customer = campaign cost / customers; revenue ROI = (revenue − campaign cost) / campaign cost

Worked example

Enter these known values and leave the other values blank.

Impressions
100000
Visits
1000
Leads
100
Customers
10
Campaign cost
500 USD
Revenue from the entered customer cohort
2000 USD
Assumed lifetime order multiplier, including first order
3
Click-through-rate (CTR)
1 %
Visits to leads
10 %
Leads to customers
10 %
Cost per mille or thousand (CPM)
5 USD
Cost per click (CPC)
0.5 USD
Cost per lead
5 USD
Cost per customer
50 USD
Return using revenue less campaign cost only
300 %
Revenue per click
2 USD
Revenue per lead
20 USD
Revenue per customer
200 USD
Projected revenue per customer
600 USD
Projected revenue for the same customer cohort
6000 USD

Assumptions and limitations

  • Use one consistent attribution period and customer cohort for impressions, clicks, leads, customers, cost and revenue. Modeled counts may be fractional; observed people and events are normally whole counts.
  • The return subtracts only the entered campaign cost. Product costs, refunds, service costs, tax and overhead are not separately deducted, so it is not net profit ROI.
  • Projected customer revenue multiplies the current revenue per customer by the entered lifetime order assumption. It assumes the current revenue basis represents one order per customer, with equal revenue on each later order and no discounting or churn.
  • The retained order multiplier starts at 100 as an illustrative input, not a forecast or benchmark. Replace it with an explicit assumption before using the projection.
  • A zero denominator can produce an input error and withhold the results. Zero campaign cost cannot establish a finite revenue ROI, and zero customers cannot establish a per-customer revenue.

Common questions

Is the projected customer value profit?

No. It is gross revenue under the entered repeat-order assumption. Contribution margin, retention, discounting and the cost of serving repeat orders require additional inputs.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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