PPC Budget & ROI Predictor
Calculate exactly how much you need to spend on Google Ads or Meta Ads to reach your revenue goals.
Required Ad Budget:
$0.00
Total Clicks Needed:
0
Target Sales:
0
Cost Per Acquisition (CPA):
$0.00
Return on Ad Spend (ROAS):
0.00x
How to Calculate Your PPC Budget
Determining your PPC (Pay-Per-Click) budget shouldn't be a guessing game. To find the optimal spend, you must work backward from your revenue goals using three core metrics: Average Order Value (AOV), Conversion Rate (CR), and Cost Per Click (CPC).
The formula for required budget is: ((Target Revenue / AOV) / (Conversion Rate / 100)) * CPC.
Key PPC Metrics Explained
- Average Order Value (AOV): The average dollar amount a customer spends per transaction. If your AOV is low, you either need a very low CPC or a high conversion rate to remain profitable.
- Conversion Rate: The percentage of visitors who complete a purchase. A 2% conversion rate is standard for many industries, while top-tier performers hit 5%+.
- CPC (Cost Per Click): How much you pay the platform (Google, Facebook, LinkedIn) for a single click. This is determined by competition and your Quality Score.
- ROAS (Return on Ad Spend): The total revenue generated divided by the total ad spend. A ROAS of 4.0x means for every $1 spent, you earned $4 in revenue.
Real-World Example
Imagine you want to generate $20,000 in monthly revenue. Your product sells for $100 (AOV). Your website typically converts at 2%, and the average CPC in your niche is $1.50.
- Sales Needed: $20,000 / $100 = 200 sales.
- Clicks Needed: 200 sales / 0.02 (2%) = 10,000 clicks.
- Budget Required: 10,000 clicks * $1.50 = $15,000.
- ROAS: $20,000 / $15,000 = 1.33x.
In this scenario, a 1.33x ROAS might be too low after accounting for product costs. You would need to either increase your conversion rate, lower your CPC through better targeting, or increase your AOV to make the campaign viable.