Planning a Google Ads or Meta Ads campaign requires more than just picking a random number. To ensure profitability, you must work backwards from your revenue goals. This PPC Budget Calculator helps you determine exactly how much you need to spend to reach your financial targets based on your website's performance metrics.
The Mathematics of PPC Spending
The calculation follows a specific logical flow:
Step 1: Sales Goal – We divide your Target Revenue by your Average Order Value (AOV) to see how many customers you need.
Step 2: Traffic Required – We take the number of sales needed and divide it by your Conversion Rate to find out how many visitors (clicks) are required.
Step 3: Total Budget – We multiply the required clicks by your estimated Cost Per Click (CPC).
Example Calculation
If you want to earn $10,000 in revenue and your average product costs $100, you need 100 sales. If your website converts at 2%, you need 5,000 clicks (100 / 0.02) to get those sales. If your CPC is $1.00, your required budget is $5,000.
Key Metrics to Track
To improve your PPC performance, focus on these three levers:
Conversion Rate: Improving your landing page can lower the budget needed for the same revenue.
CPC: High-quality scores and relevant keywords can lower your cost per click.
AOV: Upselling and cross-selling increase the value of every customer won through ads.
function calculatePPC() {
var targetRevenue = parseFloat(document.getElementById("targetRevenue").value);
var avgOrderValue = parseFloat(document.getElementById("avgOrderValue").value);
var conversionRate = parseFloat(document.getElementById("conversionRate").value);
var avgCPC = parseFloat(document.getElementById("avgCPC").value);
var resultsDiv = document.getElementById("ppcResults");
// Validation
if (isNaN(targetRevenue) || isNaN(avgOrderValue) || isNaN(conversionRate) || isNaN(avgCPC) ||
targetRevenue <= 0 || avgOrderValue <= 0 || conversionRate <= 0 || avgCPC <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
// Calculations
var salesNeeded = Math.ceil(targetRevenue / avgOrderValue);
var clicksNeeded = Math.ceil(salesNeeded / (conversionRate / 100));
var totalBudget = clicksNeeded * avgCPC;
var roas = targetRevenue / totalBudget;
// Display Results
document.getElementById("resBudget").innerHTML = "$" + totalBudget.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resClicks").innerHTML = clicksNeeded.toLocaleString();
document.getElementById("resSales").innerHTML = salesNeeded.toLocaleString();
document.getElementById("resROAS").innerHTML = roas.toFixed(2) + "x";
resultsDiv.style.display = "block";
// Smooth scroll to results
resultsDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}