CPM, CTR, ROI and Break-Even: Marketing Math Every Founder Should Know

Guides · Jun 7, 2026 · 2 views

Marketing looks creative from the outside, but the decisions are arithmetic. Five calculations cover most of them.

CPM — what attention costs

Cost per thousand impressions = spend ÷ impressions × 1000. Use the CPM calculator to compare channels honestly: a ₹5,000 campaign reaching 80,000 people (₹62.5 CPM) beats a ₹2,000 campaign reaching 10,000 (₹200 CPM), even though it "costs more".

CTR — whether the creative works

Click-through rate = clicks ÷ impressions × 100, via the CTR calculator. Rough benchmarks: search ads 3–6%, display 0.5–1%, email 2–3%. A falling CTR usually means ad fatigue — rotate the creative before raising the budget.

Conversion rate — whether the page works

Conversions ÷ visitors × 100 in the conversion calculator. E-commerce averages 1.5–3%; lead forms 5–15%. High CTR + low conversion = the ad over-promises or the landing page under-delivers.

ROI — whether any of it was worth it

(Return − cost) ÷ cost × 100 in the ROI calculator. Count all costs — tools, freelancers, your time — or every campaign looks profitable.

Break-even and margin — pricing sanity

The break-even calculator tells you how many units cover fixed costs: at ₹500 price, ₹300 variable cost and ₹40,000 fixed costs, you need 200 sales just to start earning. Pair it with the margin calculator — and remember margin (profit ÷ price) and markup (profit ÷ cost) are different numbers; the markup calculator keeps them straight.