Meta & Google Ads Formula Hub
Stop searching for CPC, CTR, CPM, CPL, CPA and ROAS formulas. Learn the essential ad metrics in one place, cross-check them with a practical campaign example, and calculate your own campaign numbers instantly.
Everything you need to understand ad metrics
Each formula includes its meaning and a practical example so you learn what the number actually tells you.
Essential Meta, Google, e-commerce and video advertising calculations.
Cross-check formulas against one consistent sample campaign.
Enter campaign data once and calculate key metrics immediately.
Open your reusable spreadsheet calculator for campaign analysis.
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Core AdsCTR Click-through rate
(Clicks ÷ Impressions) × 100
Measures how often an impression turns into a click.
Core AdsCPC Cost per click
Ad Spend ÷ Clicks
Average amount paid for each click.
Core AdsCPM Cost per 1,000 impressions
(Ad Spend ÷ Impressions) × 1,000
Average cost to deliver 1,000 impressions.
Core AdsCPL Cost per lead
Ad Spend ÷ Leads
Average advertising cost for each lead.
Core AdsCPA Cost per acquisition / conversion
Ad Spend ÷ Conversions
Average ad cost for each chosen conversion or acquisition.
Core AdsROAS Return on ad spend
Revenue ÷ Ad Spend
Revenue generated for every ₹1 spent on advertising.
Core AdsConversion Rate Click-to-conversion rate
(Conversions ÷ Clicks) × 100
Percentage of clicks that became conversions.
Core AdsCost / Result Cost per selected result
Ad Spend ÷ Results
Generic cost-per-result calculation; define the result consistently.
Core AdsRevenue / Click Revenue per click
Revenue ÷ Clicks
Average revenue generated per click.
Core AdsRevenue / Conversion Revenue per conversion
Revenue ÷ Conversions
Average revenue associated with each conversion.
Meta AdsFrequency Average impressions per reached person
Impressions ÷ Reach
Average number of times each reached account/person was served an impression.
Meta AdsLink CTR Link click-through rate
(Link Clicks ÷ Impressions) × 100
Share of impressions that generated a link click.
Meta AdsOutbound CTR Outbound click-through rate
(Outbound Clicks ÷ Impressions) × 100
Share of impressions that generated an outbound click.
Meta AdsLPV Rate Landing-page-view rate
(Landing Page Views ÷ Link Clicks) × 100
Useful diagnostic for click-to-page-load drop-off.
Meta AdsCost / LPV Cost per landing page view
Ad Spend ÷ Landing Page Views
Average advertising cost per recorded landing page view.
Meta AdsLead Rate Lead conversion from clicks
(Leads ÷ Clicks) × 100
Share of clicks that generated a lead.
Meta AdsLead-to-Sale Rate Lead-to-sale conversion
(Sales ÷ Leads) × 100
Share of leads that eventually became sales.
Meta AdsCost / Conversation Cost per messaging conversation
Ad Spend ÷ Messaging Conversations
Average spend for each defined messaging conversation/result.
Meta AdsReach Rate Audience reached
(Reach ÷ Defined Audience Size) × 100
Approximate share of a defined audience reached. Use a consistent audience-size denominator.
Meta AdsEngagement Rate Engagements per impression
(Engagements ÷ Impressions) × 100
A simple impression-based engagement rate. Platforms may surface other engagement definitions.
Google AdsSearch Impression Share Share of eligible search impressions
(Impressions ÷ Estimated Eligible Impressions) × 100
Google Ads defines impression share as impressions received divided by estimated eligible impressions.
Google AdsTop Impression Rate Rate shown above organic results
(Top Impressions ÷ Impressions) × 100
Percentage of Search ad impressions shown anywhere above organic search results.
Google AdsAbsolute Top Impression Rate Rate shown first above organic results
(Absolute Top Impressions ÷ Impressions) × 100
Percentage of Search ad impressions shown as the very first ad above organic results.
Google AdsAvg. CPC Average cost per click
Total Cost ÷ Clicks
Average amount charged for a click.
Google AdsCost / Conversion Average cost per conversion
Total Cost ÷ Conversions
Average advertising cost for each recorded conversion.
Google AdsConversion Value / Cost Value generated per unit of cost
Conversion Value ÷ Cost
Google Ads value-to-cost ratio; equivalent in structure to ROAS when conversion value represents revenue.
Google AdsConversion Value / Click Conversion value per click
Conversion Value ÷ Clicks
Average conversion value generated per click.
Google AdsQuality Score Keyword-level diagnostic, not a simple formula
No valid arithmetic formula
Quality Score is a 1–10 diagnostic based on expected CTR, ad relevance and landing page experience. Do not calculate it by adding or multiplying those components.
Google AdsAd Rank Auction-time ranking value
No public simple arithmetic formula
Modern Ad Rank considers multiple auction-time factors. Do not teach the outdated shortcut “Bid × Quality Score” as the exact formula.
Google AdsLost IS (Budget) Impression share lost to budget
Platform-estimated metric
Google estimates the percentage of eligible Search impressions lost because of insufficient budget.
Google AdsLost IS (Rank) Impression share lost to rank
Platform-estimated metric
Google estimates the percentage of eligible impressions lost because Ad Rank was insufficient.
E-commerceAOV Average order value
Revenue ÷ Orders
Average revenue per order.
E-commerceCAC Customer acquisition cost
Sales & Marketing Cost ÷ New Customers
Blended cost of acquiring a new customer across the costs included in your numerator.
E-commerceMER Marketing efficiency ratio
Total Revenue ÷ Total Marketing Spend
Blended revenue-to-marketing-spend ratio across channels.
E-commerceMarketing ROI Return on marketing investment
((Attributable Profit − Marketing Cost) ÷ Marketing Cost) × 100
Profit-based ROI. Keep profit and cost definitions consistent.
E-commerceBreak-even ROAS ROAS required before fixed overhead
1 ÷ Gross Margin Ratio
Simplified break-even ROAS when gross margin is the relevant contribution margin and ad spend is the variable acquisition cost.
E-commercePurchase Rate Click-to-purchase rate
(Purchases ÷ Clicks) × 100
Percentage of ad clicks that became purchases.
E-commerceRevenue / Order Revenue per order
Revenue ÷ Orders
Same arithmetic as AOV; useful when reading campaign examples.
E-commerceLead Value Average revenue per lead
Revenue ÷ Leads
Average realized revenue per generated lead over a defined attribution window.
Video AdsVTR View-through rate
(Video Views ÷ Impressions) × 100
Percentage of impressions that generated the defined video view.
Video AdsCPV Cost per video view
Ad Spend ÷ Video Views
Average advertising cost per defined video view.
Video AdsCompletion Rate Video completion rate
(Completed Views ÷ Video Starts or Defined Views) × 100
Share of video starts/views that reached completion. Use one consistent denominator.
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Most-used formulas at a glance
Spend ÷ ClicksClicks ÷ Impressions × 100Spend ÷ Impressions × 1,000Spend ÷ LeadsSpend ÷ ConversionsRevenue ÷ SpendConversions ÷ Clicks × 100Impressions ÷ ReachQuestions every ads learner should understand
What is the difference between CPC and CPM?
CPC measures average cost per click. CPM measures average cost per 1,000 impressions. CPC is action-focused; CPM is delivery-focused.
Why can CTR be high but conversions be low?
A high CTR shows people are clicking, but conversion performance also depends on traffic quality, offer, landing-page experience, price, tracking and post-click friction.
When should I use CPL vs CPA?
Use CPL when the result is a lead. Use CPA when the result is an acquisition or another clearly defined conversion. Name the denominator so reports stay unambiguous.
Why is ROAS not enough by itself?
ROAS compares revenue with ad spend. It does not automatically include product cost, salaries, tools, discounts, payment fees, returns, logistics or other business costs.
What does frequency tell you?
Frequency is average impressions per reached person/account. Interpret it with campaign objective, creative fatigue, audience size and time period rather than using a universal “good” number.
What is Quality Score really?
It is a Google Ads keyword-level 1–10 diagnostic informed by expected CTR, ad relevance and landing-page experience. It is not a KPI or an arithmetic score you should calculate yourself.
Ads formula questions, answered clearly
What is CPC?
CPC means cost per click. It is calculated as ad spend divided by clicks.
How do I calculate CTR?
CTR is clicks divided by impressions, multiplied by 100. If you receive 750 clicks from 25,000 impressions, CTR is 3%.
How do I calculate CPM?
CPM is ad spend divided by impressions, multiplied by 1,000.
What is the difference between CPL and CPA?
CPL measures the advertising cost per lead. CPA measures cost per acquisition or chosen conversion. The correct denominator depends on the result you are measuring.
How do I calculate ROAS?
ROAS is revenue or conversion value divided by ad spend. ₹40,000 revenue from ₹10,000 ad spend equals 4× ROAS.
Is ROAS the same as ROI?
No. ROAS compares revenue with ad spend. ROI normally compares profit or net return with the investment/cost and can include a wider cost base.
What is Meta Ads frequency?
Frequency is impressions divided by reach. It estimates how many impressions, on average, were served per reached person/account.
What is Google Ads impression share?
Impression share is impressions received divided by the estimated number of impressions you were eligible to receive.
Can I calculate Google Ads Quality Score myself?
No exact public arithmetic formula is available. Google reports Quality Score as a 1–10 diagnostic based on expected CTR, ad relevance and landing-page experience.
Is Ad Rank simply Bid × Quality Score?
No. That shortcut is outdated and should not be treated as the exact modern Ad Rank formula. Ad Rank is determined using multiple auction-time factors.
What is break-even ROAS?
A simplified break-even ROAS can be estimated as 1 divided by gross margin ratio. A 40% gross margin gives a simplified break-even ROAS of 2.5×, before other variable and fixed costs.
Why can the same metric differ between platforms?
Platforms can define clicks, views, conversions, attribution windows and engaged actions differently. Always use the platform's metric definition and keep your denominator consistent.
Educational resource only. Platform definitions, attribution models and reporting interfaces can change; verify platform-reported metrics when making campaign decisions.
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