Calculate How Much Should You Pay-Per-Click With This FREE Pay Per Click Calculator

How to calculate what should be your maximum bid

If you are thinking about getting into a bit of Pay-Per-Click marketing, it is a good idea to know what your maximum bid should be. There is no doubt that Pay-Per-Click is the fastest way to drive traffic to your website.

These visitors come at a price. Each click costs you money so it is a good idea to work out what you should pay for each click in order to create a profitable campaign. To calculate how to bid profitably, we will use a free Pay-Per-Click calculator. Click here to launch the calculator.

Instructions

Conversion Ratio. (% of visitors that buy) - In this field, enter the conversion ratio of your sales page. for example, if 2 people in every hundred make a purchase, then enter the number 2 in the field.

Dollars Profit Per Sale (example: 19.50) - In this field, you need to enter the amount of profit you make per sale. If you make $40.00 per sale, then enter the number 40 without the dollar symbol.

Percentage of profit to spend on clicks - Enter the percentage of your profit you want to spend on clicks. For example, if you would like to spend 30% of your profits on clicks, then enter just the number 30 without the percentage symbol.

Click the Calculate button to perform the calculation. Click the Convert to $$$ Value button to convert to a dollar amount.

Sample Calculation

If your conversion ratio is 5 percent and you make 30 dollars profit per sale, and you would like to spend 30 percent of your profits on clicks, then your maximum bid should be no more than 45 cents.

For more information on Pay-Per-Click marketing, visit Google Toolkit. Learn how to reach more people and pay less than your competitor, for the same keyword search.