Here is a handy *Reference Sheet* that shows how to calculate ROI, Conversion Rate, and other specific online metrics. These calculations are applicable for Search Engine Marketing, or any Pay per Click campaign.

1) To calculate **Cost per Acquisition (CPA)**:

CPC/Conversion Rate

2) To calculate **CPC**:

Cost of Acquisition*Conversion Rate

3) To calculate **Conversion Rate**:

CPC/Cost of Acquisition

4) To calculate the **# of Conversions**:

Total Clicks * Conversion Rate

5) To calculate **ROAS (Return on Advertising Spend)**:

â€¢ (Revenue-Advertising Cost)/ Advertising Cost

Then, multiply the ROAS by 100 to express as a percentage.

6) To calculate: **Average CPC**:

Total Cost/Total Clicks

If you are in the Lead Generation business, and you have a call center, then there are additional metrics and calculations to take into consideration. The percentages need to be based on actual call center numbers.

For example,

__Lead Generation Assumptions (hypothetical)__:

â€¢ Click to Web Form Contact percentage=1%

â€¢ Contact Form to Lead percentage=35%

â€¢ Lead to Conversion percentage=4%

1) To calculate **# of Contacts**:

Click to Contact % * Total Clicks

2) To calculate the **# of Leads**:

# of Contacts * Contact to Lead percentage

3) To calculate the **# of Conversions**:

# of Leads * Lead to Conversion percentage

4) To calculate **Cost Per Lead**:

Cost/Leads

To improve your online metrics there are various PPC Strategies to experiment with.

Here is another good one for you. Cost per net click. This formula figures in bounce rates to determine how much ‘good’ PPC clicks are costing you.

Total Cost for Clicks / (Number of Clicks * (100% – Bounce Rate%))

Calculating CTR is not difficulty at all. All you need are the ad impressions and the clicks that ad received and the formula:

ClicksÃ‚ / Ad Impressions= CTR

A website with 100 impressions and 1 click would have a ctr of 1%. A website with 1000 impressions and 1 click would have a ctr of 0.1%. A website with 2345 impressions and 46 clicks would have a ctr of 1.96%.

The first three digits of the CTR are placed before the decimal point while the remaining are placed after it.

For a CPC advertising what CTR is ideal!

It should be 1.00% +.

Interested in learning more about calculating the value of a web lead? Check out http://goo.gl/0d5JW.