Ad Budget Planner
Revenue-Driven
Set your revenue target and work backwards to find exactly how much you need to spend on ads to hit it.
How much revenue you want from ads per month
Average value per order / conversion
% of clicks that convert to purchases
Expected cost per click on your ads
Minimum acceptable return on ad spend
How it works
Revenue Target ÷ AOV = Conversions needed
Conversions ÷ CVR = Clicks needed
Clicks × CPC = Required Budget
Monthly Budget
$50,000
Required ad spend
Daily Budget
$1,667
Per day (30-day month)
Expected ROAS
1.00x
Below 3x target
Target CPA
$75
Cost per acquisition
Your ROAS (1.00x) is below your target (3x).
You need a ROAS of 3x — see what needs to change below.
Max CPC
Lower your CPC to $0.50 (-67%)
Min Conversion Rate
Raise your CVR to 6.00% (+200%)
Min AOV
Raise your AOV to $225 (+200%)
Impressions (est.)
1.7M
at 2% avg CTR
Clicks
33k
Conversions
667
at 2% CVR
Revenue
$50,000
at $75 AOV
Budget Planning Tips
Start with 20% of revenue
Most ecommerce brands spend 10–20% of revenue on ads. Use this as a sanity check.
Improve CVR before scaling
Doubling your conversion rate halves your required budget for the same revenue.
Increase AOV to lower CPA
Higher order values mean fewer conversions needed to hit the same revenue target.
Benchmark your CPC
Lower CPC = more clicks per dollar. Improve creative CTR to reduce effective CPC.
To hit $50,000/month you need 33,333 clicks, 667 conversions, and a $50,000 budget ($1,667/day). Expected profit: $0/month (0.0% margin).
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Frequently Asked Questions
Common questions about the Ad Budget Planner