PPC Budget Calculator

Calculate your PPC advertising budget based on revenue goals, conversion targets, or available budget. Get insights on expected clicks, conversions, and ROI to optimize your campaigns.

Campaign Goals

Campaign Metrics

PPC Budget Planning Guide

Effective PPC budget planning requires balancing your business goals with realistic performance expectations. This calculator helps you determine the right budget based on your specific objectives and industry benchmarks.

Key PPC Metrics Explained

CPC (Cost Per Click)

The average amount you pay for each click on your ads.

Formula: Total Cost ÷ Total Clicks

Industry averages range from $1-$7 depending on competition.

CPA (Cost Per Acquisition)

The cost to acquire one customer or conversion.

Formula: Total Cost ÷ Total Conversions

Should be lower than your customer lifetime value.

ROAS (Return on Ad Spend)

Revenue generated for every dollar spent on ads.

Formula: Revenue ÷ Ad Spend

A ROAS of 4:1 means $4 revenue per $1 spent.

Conversion Rate

Percentage of clicks that result in conversions.

Formula: Conversions ÷ Clicks × 100

Average is 2-3%, but varies by industry.

Budget Planning Strategies

Revenue-Based Budgeting

Start with your revenue goal and work backwards:

  1. Set your revenue target
  2. Calculate needed conversions (Revenue ÷ AOV)
  3. Estimate required clicks (Conversions ÷ CVR)
  4. Calculate budget (Clicks × CPC)

Profit-First Approach

Ensure profitability by considering:

  • Break-even ROAS: 100 ÷ Profit Margin %
  • Target ROAS: Should exceed break-even by 20-50%
  • LTV:CAC Ratio: Aim for 3:1 or higher
  • Payback Period: How quickly you recover CAC

Budget Optimization Tips

Start Small & Scale

  • Begin with 10-20% of target budget
  • Test and optimize for 2-4 weeks
  • Scale winning campaigns gradually
  • Maintain 20% budget for testing

Monitor & Adjust

  • Review performance weekly
  • Adjust bids based on ROAS
  • Pause underperforming keywords
  • Reallocate budget to winners

Important Considerations

  • Industry benchmarks are averages - your results may vary significantly
  • Account for seasonality and market fluctuations in planning
  • Include testing budget for new campaigns and keywords
  • Factor in agency fees or management costs if applicable
  • Consider the full customer journey beyond last-click attribution