Forum Discussion
Margin calculator for media budget
Based on your example (20% margin on $10,000 total = $2,000, plus $3,000 CPM fee), there are two mathematically valid approaches. Choose the one that fits your workflow.
Option A – Fixed Total Budget
Media cost adjusts down
Media Cost = Total × (1 − Margin%) − CPM Fee
Excel: = A1 * (1 - B1) - (C1 / 1000) * D1
Where:
A1 = Total budget ($10,000)
B1 = Margin % (20%)
C1 = CPM rate ($1.50)
D1 = Impressions (2,000,000)
Result: Media cost = $5,000, Margin = $2,000 (20% of total)
Fixed Total Budget
Cell | Label | Example Value | Description |
A1 | Total Budget | 10,000 | Fixed total amount client pays |
B1 | Margin % | 20% | Desired margin as % of total |
C1 | CPM Rate | 1.50 | Flat fee per 1,000 impressions |
D1 | Impressions | 2,000,000 | Total impressions delivered |
Option B – Fixed Media Spend
Total budget adjusts up
Total = (Media Cost + CPM Fee) / (1 − Margin%)
Excel: = (E1 + (F1 / 1000) * G1) / (1 - H1)
Where:
E1 = Media cost ($5,600)
F1 = CPM rate ($1.50)
G1 = Impressions (2,000,000)
H1 = Margin % (20%)
Result: Total = $10,750, Margin = $2,150 (20% of total)
Fixed Media Spend
Cell | Label | Example Value | Description |
A1 | Media Cost | 5,600 | Fixed media spend (cannot change) |
B1 | CPM Rate | 1.50 | Flat fee per 1,000 impressions |
C1 | Impressions | 2,000,000 | Total impressions delivered |
D1 | Margin % | 20% | Desired margin as % of total |
My answers are voluntary and without guarantee!
Hope this will help you.