How to calculate CPC based on ROI?

Discussion in 'Pay Per Click Advertising' started by Robbin207, Mar 2, 2012.

  1. #1
    I am extremely bad @ mathematics so excuse me for this stupid question.

    I tried to figure it out but after 10 minutes i gave up.

    Ok here is goes:

    Let's say i have a EPC of $0.50 and i want to get atleast a 50% ROI.

    How do i calculate what my maximum CPC may be?

    Thanks in advance....
     
    Robbin207, Mar 2, 2012 IP
  2. PPCoach

    PPCoach Peon

    Messages:
    107
    Likes Received:
    3
    Best Answers:
    0
    Trophy Points:
    0
    #2
    If you have an EPC of $0.50, and you're looking for an ROI of 50%, then you're max CPC would be about $0.33.
     
    PPCoach, Mar 2, 2012 IP
  3. Robbin207

    Robbin207 Peon

    Messages:
    8
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #3
    Could you tell me please how you got to that number so i can calculate it myself. Thanks :)
     
    Robbin207, Mar 2, 2012 IP
  4. PPCoach

    PPCoach Peon

    Messages:
    107
    Likes Received:
    3
    Best Answers:
    0
    Trophy Points:
    0
    #4
    Well since you only gave me those two numbers (and no payout), I just did it in my head.

    $0.25 CPC with an EPC of $0.50 means 100% ROI.

    $0.50 CPC with an EPC of $0.50 means 0% ROI.

    So for 50% ROI, the CPC has to be midway between .25 and .50. That means the CPC will be $0.33.
     
    PPCoach, Mar 2, 2012 IP
  5. Robbin207

    Robbin207 Peon

    Messages:
    8
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #5
    OK, but i would like to know the formula, because i can't do it in my head with this example:

    I want a 76% ROI and my EPC is $0.83

    What CPC do i need here?

    I need a formula to calculate this one.

    - Thanks.
     
    Robbin207, Mar 2, 2012 IP
  6. PPCoach

    PPCoach Peon

    Messages:
    107
    Likes Received:
    3
    Best Answers:
    0
    Trophy Points:
    0
    #6
    You need to give me the payout of the offer you're running.
     
    PPCoach, Mar 2, 2012 IP
  7. Robbin207

    Robbin207 Peon

    Messages:
    8
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #7
    $3.80 for example.
     
    Robbin207, Mar 3, 2012 IP