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PPC Budget & ROI Calculator

Estimate the monthly ad spend required to reach your revenue goals based on real-world performance metrics.

Results Summary

Monthly Budget Needed: $0.00

Estimated Sales Volume: 0

Traffic Required (Clicks): 0

Return on Ad Spend (ROAS): 0.0x

Enter your metrics and click calculate to see the projections.

How to Calculate Your PPC Budget for Success

Determining a Pay-Per-Click (PPC) budget isn't about guessing how much you want to spend—it's about reverse-engineering your revenue goals. Whether you are using Google Ads, Bing, or Meta, the math remains the same: your budget is a product of your conversion efficiency and the cost of traffic in your industry.

The PPC Budget Formula

To find your required budget, we use the following calculation sequence:

1. Number of Sales Needed: Target Revenue ÷ Average Sale Value
2. Clicks Required: Sales Needed ÷ (Conversion Rate / 100)
3. Total Monthly Budget: Clicks Required × Average Cost Per Click (CPC)

Key Performance Indicators (KPIs) Explained

Conversion Rate: This is the percentage of website visitors who complete a desired action (like making a purchase or filling out a form). For most industries, a 2% to 5% conversion rate is standard.

Average CPC: This is what you pay every time someone clicks your ad. This fluctuates based on competition and keyword intent. Highly competitive fields like Legal or Insurance can see CPCs over $50, while e-commerce often sees sub-$1.00 rates.

ROAS (Return on Ad Spend): This measures the gross revenue generated for every dollar spent on advertising. A 4:1 ROAS (4.0x) is typically considered a healthy benchmark for many businesses.

Example Scenario

Imagine you want to generate $20,000 in monthly revenue. Your product sells for $200. Your landing page converts at 2%, and the average CPC in your niche is $1.50.

• Sales Needed: 100 sales ($20,000 / $200)
• Clicks Needed: 5,000 clicks (100 sales / 0.02)
• Budget Required: $7,500 (5,000 clicks * $1.50)
• ROAS: 2.67x ($20,000 / $7,500)

function calculatePPC() { var revenue = parseFloat(document.getElementById('targetRevenue').value); var aov = parseFloat(document.getElementById('avgOrderValue').value); var convRate = parseFloat(document.getElementById('conversionRate').value); var cpc = parseFloat(document.getElementById('avgCPC').value); if (isNaN(revenue) || isNaN(aov) || isNaN(convRate) || isNaN(cpc) || aov <= 0 || convRate <= 0) { alert("Please enter valid positive numbers for all fields."); return; } // Logic: // 1. Sales needed = Revenue / AOV // 2. Clicks needed = Sales / (ConvRate / 100) // 3. Budget = Clicks * CPC var salesNeeded = revenue / aov; var clicksNeeded = salesNeeded / (convRate / 100); var totalBudget = clicksNeeded * cpc; var roas = revenue / totalBudget; // Update UI document.getElementById('resBudget').innerText = '$' + totalBudget.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resSales').innerText = Math.ceil(salesNeeded).toLocaleString(); document.getElementById('resClicks').innerText = Math.ceil(clicksNeeded).toLocaleString(); document.getElementById('resROAS').innerText = roas.toFixed(2) + 'x'; // Toggle visibility document.getElementById('ppc-placeholder').style.display = 'none'; document.getElementById('ppc-results-display').style.display = 'block'; }