True MarginTrue Margin

Free Ad Budget Calculator

How much should you spend on ads? Enter your revenue goal and we'll calculate the budget, traffic, and orders you need.

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Your Ad Budget

Required Ad Spend$10,920.00
Visitors Needed7,280
Orders Needed182
ROAS0.92x
Cost per Acquisition$60.00
Gross Profit$6,000.00
Net Profit (after ads)$-4,920.00 (-49.2%)

Budget by Revenue Goal

$5,000/mo → $5,460 ads$-2,460 profit
$10,000/mo → $10,920 ads$-4,920 profit
$25,000/mo → $27,300 ads$-12,300 profit
$50,000/mo → $54,600 ads$-24,600 profit
$100,000/mo → $109,140 ads$-49,140 profit
True Margin APEX
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Formula and worked example

Ad budget = required paid visits × cost per click; required visits = target orders ÷ conversion rate

An illustrative $20,000 revenue goal at $50 average order value requires 400 orders. At 4% conversion and $0.50 per paid visit, that requires 10,000 visits and $5,000 in ad spend, equivalent to 4x ROAS.

Frequently asked questions

How much should I budget for advertising?

Start with your goal, modeled acquisition efficiency and contribution margin. Revenue divided by ROAS gives the spend required by those assumptions, not a guaranteed result.

Does the revenue goal include organic sales?

For a campaign ROAS calculation, use the revenue you expect to attribute to that advertising. Including unrelated revenue can understate the required advertising budget.

Browse all free ecommerce calculators to compare advertising, pricing and profit assumptions.

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