PPC Budget & Forecast Calculator
Estimate your required ad spend based on your revenue goals and conversion metrics.
Your Campaign Forecast
*Calculations are based on the input metrics provided and do not account for management fees or external variables.
How to Determine Your Monthly PPC Budget
Setting a Pay-Per-Click (PPC) budget isn't about guessing; it's about reverse-engineering your business goals. Whether you are running Google Ads, Bing Ads, or Social Media campaigns, your budget should be a reflection of your desired revenue and the efficiency of your sales funnel.
Key PPC Metrics Explained
- Monthly Revenue Goal: The total amount of gross sales you want to generate specifically from your PPC traffic.
- Average Sale Value (AOV): The average amount a customer spends when they make a purchase. For lead generation, this would be your Lead-to-Sale value.
- Conversion Rate: The percentage of website visitors who complete a desired action (like a purchase or lead form submission).
- Cost Per Click (CPC): The average amount you pay each time someone clicks on your ad.
The Formula for PPC Success
To calculate how much you need to spend, we follow this logic:
- Required Conversions = Revenue Goal / Average Sale Value
- Required Clicks = Required Conversions / (Conversion Rate / 100)
- Monthly Budget = Required Clicks * Average Cost Per Click
Example Calculation
Suppose you want to generate $20,000 in revenue. Your average product sells for $200. This means you need 100 conversions. If your website converts at 2%, you need 5,000 clicks. At an average CPC of $1.00, your required monthly budget would be $5,000.
Why ROAS Matters
Return on Ad Spend (ROAS) tells you how many dollars you earn for every dollar spent on advertising. In the example above, spending $5,000 to earn $20,000 results in a 4.0x ROAS. Understanding your "Break-even ROAS" is critical to ensure your PPC campaigns remain profitable after accounting for COGS (Cost of Goods Sold) and overhead.