Calculate and improve your return on investment
Find the numbers
Gather 2 numbers from AdWords for, say, the past 30 days:
- Your total number of conversions. You can check this from your conversions columns in your reporting table.
- How much you spent on AdWords. This is your monthly AdWords budget.
Gather (or estimate) 2 numbers from your business:
- Your average revenue from conversions. How much you average per sale (or per new customer). You can set a value on each conversion to measure precisely the amount you earned.
- Your operating costs. How much you spend keeping your business running (not including advertising costs).
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