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Ad budget calculator

Estimate the budget you need to hit your conversion target, on Google Ads or any other platform, based on your average cost per click and conversion rate.

The sales or leads you’re aiming for over the period.

$
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Enter your conversion target, average cost per click and conversion rate to estimate the budget you need.

How do you estimate a budget?

Work backward from the target, not from the spend. The number of clicks you need is your conversion target divided by your conversion rate. Multiply that by your average cost per click and you have the budget to plan for.

Two ways to bring the budget down

For the same number of sales you can work on two fronts: pay less per click (bidding, ad quality) or convert more of the visitors you already get (landing page). The second often delivers the better return, and it’s the more neglected of the two.

Budget for the learning period

In the first few weeks the cost per conversion is almost always higher, while the bidding algorithm learns. Build a buffer into your estimate for that period, and only judge the results once delivery has stabilized.

Common questions

How do you calculate an ad budget?

Start with your conversion target. Divide it by your conversion rate to get the clicks you need, then multiply those clicks by your average cost per click. For example, getting 30 conversions at a 3% rate takes 1,000 clicks; at $0.80 a click, the budget is $800.

How much should I budget to start on Google Ads?

There’s no universal minimum: the right budget is the one that produces enough conversions to judge the results. Estimate it from your target, cost per click and conversion rate, then leave room for the learning period, when the cost per conversion is usually higher.

Does the budget depend on the conversion rate?

Yes, directly. At the same cost per click, a conversion rate half as high doubles the clicks, and so the budget, for the same number of sales. Improving your landing page lowers the budget you need as much as improving your bidding does.

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ROAS calculatorCPA calculatorBreak-even calculatorConversion rate calculatorCPM, CPC and CTR calculatorMax bid calculator (max CPC)Customer lifetime value (LTV) calculator

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