Free Calculator

Ad Budget Calculator

Stop guessing. Reverse-engineer your ad budget from your revenue goal — and know exactly what you need to spend to hit your numbers.

Your Numbers

Fill in what you know. The more accurate your inputs, the more useful the output.

$
How much revenue do you want ads to generate per month?
$
Average revenue per customer or transaction
%
What % of leads do you typically convert to paying customers?
$
If you know your CPL, we'll calculate budget directly. Leave blank to use the reverse method.

CPL Benchmarks by Industry

Home Services$25 – $75
Legal Services$100 – $300
Healthcare$50 – $150
Real Estate$40 – $200
B2B Services$50 – $250
eCommerce$10 – $50
Restaurants$5 – $25

Enter your revenue goal, deal value, and close rate above to calculate your recommended ad budget.

Recommended Monthly Budget
Daily Budget
per day
Revenue Goal
Conversions Needed
Leads Needed
Cost Per Lead
Cost Per Acquisition
Budget as % of Revenue

How to Calculate Your Ad Budget

The most reliable way to set an ad budget isn't to pick a number that "feels right" — it's to reverse-engineer from your revenue goal using the math that connects goals to investment.

Step 1: How many customers do you need?
Customers Needed = Revenue Goal ÷ Average Deal Value

Step 2: How many leads does that require?
Leads Needed = Customers Needed ÷ Close Rate

Step 3: What budget does that require?
Ad Budget = Leads Needed × Cost Per Lead

Example: $20K goal ÷ $2,500 deal = 8 customers
8 ÷ 20% close rate = 40 leads needed
40 leads × $45 CPL = $1,800/mo budget

What If I Don't Know My CPL?

If you don't have historical CPL data, use the industry benchmarks in the calculator sidebar as a starting point. For a new campaign, we typically recommend:

  • Starting with a 90-day test budget based on median CPL for your industry
  • Tracking actual CPL from the first month and recalculating
  • Scaling budget once CPL and close rate are confirmed from real data

The Rule of Thumb

A common benchmark: ad spend should represent 5–15% of your revenue goal, depending on your industry and margins. High-competition markets (legal, healthcare, home services in metro areas) typically require the higher end. The math above gives you a more precise number — but the 5–15% rule is a useful sanity check on the output.

Ready to run campaigns that hit your numbers?

White Heaven Co builds and manages Google and Facebook ad campaigns for local businesses — with clear reporting and accountability to real ROI targets.

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