So you’re thinking about a pay per click campaign but aren’t sure if it’s going to be profitable for your products, right? You aren’t alone – depending on your margins and marketing budget, some products just don’t have the margins for an effective PPC campaign. I created this calculator because I regularly work with a lot of different types of products and wanted to determine the potential revenue from a campaign before I spent the money testing it.
This can be as precise or as generic as you want it to be, so here’s how this works: Lets say your product sells for $149 and your cost on the item is $79. And lets say the average cost per click on your keywords is between $0.75 and $2.50. If your site converts at 2%, and your advertising budget was $10,000 per month, how much money would you make? Enter the numbers below and I’ll do the math for you.
Don’t include shipping costs since that’s usually just passed through to the customer. The green rows show your profitable ranges, and the red ones show where you’re losing money. If you’re seeing a lot of red, PPC might not be the best choice for you.
One last thing, don’t over-estimate your conversion rate! The average conversion rate is 1% to 3%.
Feel free to use this calculator as often as you like. And if you really want to be nice, Stumble it, Digg it, and tell your friends! 
Boy that really helps me the heck out.