One of the biggest challenges in building and managing Facebook advertising strategies is keeping the strategy, costs, and results aligned with the business’ goals.
Although Facebook provides a lot of performance data, many people don’t know how to translate Facebook’s data into insight that actually pertains to their business goals. For that, you have to make some external calculations. Which is where the Ultimate Facebook ad cost calculator template comes in.
It’s especially handy when building high-performance advertising funnels (a strategy I explain in length in this linked post if you’re unfamiliar).
With the template, you can easily calculate the cost of your Facebook campaigns, review cost per result, forecast hypotheses, spot funnel optimization opportunities, and more.
The free Google Sheet template is linked just below the table of contents for this article.
- What it calculates
- The things it can forecast
- Calculation tips
- Forecasting tips
- Funnel optimization & forecasting tips
Download The Calculator
What it can calculate:
|The point campaigns start making profit (Break-even points)|
|Ad funnel performance issues and conversion ratios|
|$ Cost per click, $ Cost per page view, $ Cost per content view, $ Cost per add to cart, $ Cost per purchase|
|Return on ad spend (ROAS), Return on investment (ROI)|
|Revenue per page view, Revenue per link click, Revenue per purchase, Revenue per add to cart|
The things it can forecast:
|How many more sales you can get if you improve your conversion funnel|
|How many sales you can get with increased ad spend|
|Cost per click, Revenue per purchase, Total campaign costs|
|How external costs are affecting your campaign’s profitability|
|How much you need to spend in order to earn $ X|
|% Link clicks to page views, % Page views to content views, % Content views to adds to cart|
|# Link clicks, # Page views, # Content views, # Adds to cart|
|$ Cost per page view, $ Cost per content view, $Cost per add to cart, $Cost per purchase|
|Return on ad spend (ROAS), Return on investment (ROI)|
Calculating your Facebook Costs and Break-Even Points
The first page of the google sheet template is where you input your store’s current advertising results. It allows you to see the detailed breakdown of your costs.
You are not only able to see the cost per each event (click, add to cart, purchase, etc.) but you can see the revenue generated by each action as well. This allows you to zero in on the most important question of all, “at what point am I making money?”, which is where the break-even calculations to the far right of the sheet come into play.
This section can also help you gain understanding of your costs and performance, which in turn gives you a clearer view of what to do to improve your result. Sometimes it’s more important to improve a conversion ratio than reduce Cost Per Click (CPC) because cheaper clicks often result in reaching a less qualified audience.
keeping an eye on the big picture is easier said than done, but this section’s detailed breakdown can help you keep all the working parts in mind.
Forecasting Facebook Advertising Costs and Results
The forecasting section is a great place to gain insight into your campaign’s potential. It allows you to input hypothetical numbers to see what kind of results you can get if you manage to change your current situation.
So if you’re trying to find out how much to spend to reach your revenue goal, or trying to figure out where to focus on improvements to get the biggest revenue boost, this is your page to play with.
You can easily test out different scenarios. For instance, if you’ve been thinking about improving your ads with a freelancer, you can add additional campaign costs into the “Other campaign costs” section. Then you would also want to moderately increase your forecasted results (since improved ads will hopefully improve performance). The resulting comparison would give you insight to compare how the improved performance may offset costs.
Play around with changing your monthly ad spend or increasing and decreasing your revenue per purchase, to spot opportunities to improve your business structure.
If you decide to modify your campaign results to Facebook averages, don’t lose sight of the fact that they are only estimates. You should use as much real data as you can to keep things in the realm of “possible” when forecasting
Funnel Optimization and Forecasting
The funnel results and forecasting sections of the Facebook ad cost calculator are specifically for people familiar with building ads like a funnel.
Basically, you need to view your Facebook campaign as a series of connected events. Your potential customers click a link ➡️ view a page ➡️ view specific content➡️ add something to their cart ➡️ make a purchase.
Only a percentage of the people who click a link actually make a purchase. Many others stop their customer journey somewhere along the way. But the secret to increasing sales is consistently analyzing and optimizing your funnel so customers make it through the funnel.
Forecasting here can also be a great way to figure out where you should focus your time and energy. For example, if you have lots of add to cart events but low sales, your checkout process may need improving. Customers can get scared away by unclear shipping policies or insecure payment process. Or you may want to create a specific retargeting campaign for people who abandon their carts.
There are many other uses for the calculator. It’s best to play around with it yourself and see what is useful to you and your specific business case.
If you enjoy the calculator you will probably enjoy our:
Interested in learning how to build Facebook advertising funnels that work on autopilot, ad reduce your Facebook ad cost? Check out Brainity and see what you can achieve with automated customer journey ads.