Free Tool
Ad Budget Calculator
Calculate your ideal advertising budget based on your target CPA, conversion rate, and profit margins. See whether your ad spend is profitable before you spend a dollar.
How much you'll pay per conversion
% of visitors who convert
Average revenue per conversion
After COGS, before ad spend
Budget Benchmarks by Channel
| Channel | Min Monthly Budget | Learning Period | Best For |
|---|---|---|---|
| Google Search | $1,000 | 2-4 weeks | High-intent buyers |
| Google Shopping / PMax | $3,000 | 2-4 weeks | Ecommerce products |
| Meta (Facebook/IG) | $1,500 | 1-2 weeks | Visual products, DTC |
| TikTok | $2,000 | 1-2 weeks | Gen Z/Millennial products |
| $3,000 | 4-6 weeks | B2B lead generation |
How to Use This Calculator
- Target CPA: How much you're willing to pay per conversion. Start with your break-even CPA (AOV x margin) and target 30-50% below.
- Conversion rate: Check GA4 → Reports → Monetization → Ecommerce purchases. Typical ecommerce: 1-3%. Lead gen: 2-5%.
- Average order value: Check your ecommerce platform (Shopify/WooCommerce reports).
- Profit margin: Revenue minus COGS, shipping, and fees — before ad spend.
For a deeper dive on ROAS and profitability, read How to Calculate ROAS. For Performance Max budgeting specifically, see our PMax setup guide.
Frequently Asked Questions
How much should I spend on Google Ads?
Minimum $1,000/month for Google Search. Google needs at least 30 conversions/month to optimize Smart Bidding effectively. Use this calculator: (target daily conversions x target CPA) = daily budget.
What is a good CPA?
A good CPA depends on your margins. If your AOV is $75 with 40% margin, break-even CPA is $30. Target 30-50% below break-even for profit ($15-20 CPA in this example).
How long before ads start working?
Allow 2-4 weeks for the learning period. Don't make changes during this window — it resets the algorithm. If still no results after 4 weeks, the issue is usually broken tracking, not the campaign itself.
Budget means nothing if your tracking is broken
We check your conversion tracking, consent setup, and server-side configuration for free.
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