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Calculate the performance of an AdWords account with the following formulas. All data must be calculated for the same period.

# Conversion Rate

### Definition:

The conversion rate is the proportion of visitors who buy a product or a service (for e-commerce website) or who subscribe for something, or in general have completed a goal, successfully.

### Formula:

Conversion Rate (CR) % = Conversions * 100Visits

## Average revenue per order

### Formula:

Average revenue per order = Revenueconversions

# Cost Per Action - CPA

### Definition:

Cost per Action (CPA) is the amount that the advertiser pays for each specified action (for example an order for e-commerce website)

### Formula:

Cost Per Action (CPA) = SpendingConversions

## Value Per Conversion

### Formula:

Value Per Conversion = Average revenue per orderCost Per Action

# Value Per Click - VPC

### Definition:

Value per click (VPC) is the expected profit from a current visitor to your website.

### Formula:

Value Per Click (VPC) = Value Per Conversion * Conversionsvisits

Tip: Value per Click and Cost per Click rate must be VPC > CPC

## Profit

### Formula:

Profit = Revenue - ( Cost Per Action * Conversions )

# Return On Investment - ROI

### Formula:

Return On Investment (ROI) % = Profit * 100Spending