Website Ad Revenue Calculator

How Website Ad Revenue is Calculated

Monetizing a website through advertisements is one of the most common ways to generate passive income online. To estimate your potential earnings, you need to understand the main metrics used by advertising networks like Google AdSense, Mediavine, or Raptive.

Key Advertising Metrics

• Page RPM (Revenue Per Mille): The estimated earnings you receive for every 1,000 pageviews. It is calculated as: $$RPM = \left( \frac{\text{Estimated Earnings}}{\text{Number of Pageviews}} \right) \times 1,000$$
• CTR (Click-Through Rate): The percentage of pageviews or ad impressions that result in a click: $$CTR = \left( \frac{\text{Ad Clicks}}{\text{Ad Impressions}} \right) \times 100\%$$
• CPC (Cost Per Click): The amount of revenue you earn each time a user clicks on an ad.

Revenue Formulas

Depending on the monetization model, you can estimate your ad revenue using these formulas:

1. Impression-Based (RPM) Model

If your network pays primarily based on ad views/impressions, your earnings are:

$$\text{Earnings} = \frac{\text{Pageviews} \times \text{RPM}}{1,000}$$

2. Click-Based (CPC + CTR) Model

If your network pays for user clicks, your earnings are:

$$\text{Earnings} = \text{Pageviews} \times \left( \frac{\text{CTR}}{100} \right) \times \text{CPC}$$