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:
- Set your revenue target
- Calculate needed conversions (Revenue ÷ AOV)
- Estimate required clicks (Conversions ÷ CVR)
- 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