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Ad budget

Ad budget calculator: how much to spend to hit your sales target

From budget to clicks, orders and profit, or start from a sales target to find the budget you need. The tool compares your cost per order with the most your margin can absorb and shows a pessimistic and an optimistic scenario.

Budget or sales targetBreak-even and real profit3 scenarios
Where do you start?
Starting point by platform (rough)
Illustrative defaults only. Replace them with data from your own ad account: cost per click varies by country, niche and season.

Forecast

2,000Expected clicks
60Expected orders
2,100 JODExpected revenue
4.2xExpected ROAS
8.33 JODCost per order (CPA)
14 JODMax CPA your margin allows
340 JODNet profit after ads · break-even ROAS 2.5x

On these numbers the campaign covers itself with a healthy margin: cost per order is clearly below what your profit can absorb.

What if the numbers get worse or better?

ScenarioOrdersRevenueROASProfit
Pessimistic27.7969 JOD1.94x-112 JOD
Base case602,100 JOD4.2x340 JOD
Optimistic1053,675 JOD7.35x970 JOD

Pessimistic: cost per click 30% higher and conversion 40% lower. Optimistic: cost per click 20% lower and conversion 40% higher.

A planning estimate, not a promise of results. It excludes shipping, returns, commissions and design or team costs. After two weeks of running, replace these numbers with your actual figures from the ads dashboard.

How the tool works

Pick your starting point: a budget you have or a sales target you want. Enter the cost per click, click-to-order conversion rate, average order value and your profit margin, and the tool shows clicks, orders, revenue, ROAS and cost per order, then compares it with the most your margin can absorb to tell you whether the campaign pays. A table shows a pessimistic and an optimistic scenario.

How an ad budget is calculated from your numbers

The chain is simple: budget ÷ cost per click = clicks, clicks × conversion rate = orders, orders × average order value = revenue. The tool runs those steps and adds the one most people skip: comparing your cost per order against the most your profit margin can absorb.

If you sell at 35 and your margin is 40%, gross profit is 14 per order. Any acquisition cost above 14 means the ad eats the whole profit of the order. That is why the tool shows the maximum CPA next to the expected cost per order.

Start from the goal, not the budget

If you have a clear target (say 40 orders a month), choose “I have a sales target”. The tool works out the budget needed instead of guessing, and divides it across the campaign days to show the daily spend. That is more accurate than picking a number and hoping.

Where do CPC and conversion rate come from?

Your past campaigns are the best source. If this is your first campaign, treat the defaults as a starting point only and replace them with real numbers after one to two weeks of spend, because cost per click and conversion vary widely by country, niche, season, landing page and the ad itself.

  • Cost per click: from the campaign report in your ads manager or Google's keyword planner.
  • Conversion rate: orders ÷ site clicks, from Google Analytics or your store dashboard.
  • Order value and margin: from your real invoices, not the list price.

Common mistakes when planning an ad budget

  • Relying on ROAS without the profit margin: a 4x return can still lose money at a 20% margin.
  • Ignoring the learning phase: the first weeks cost more and are less stable, so do not judge a campaign after two days.
  • Raising the budget suddenly: raise it 20 to 30% every few days so delivery stays stable.
  • Forgetting returns and shipping: if they are large, lower the margin you enter.

Frequently asked questions

Where do I get the cost per click and conversion rate?

From your past campaigns in the ads manager and Google Analytics. For a first campaign, use the defaults as a start and replace them with your own after two weeks of spend.

What is the difference between budget and sales target mode?

In budget mode you enter what you plan to spend and see what to expect. In target mode you enter the orders you want and the tool works out the budget needed.

What is the maximum CPA my margin allows?

It is the average order value multiplied by your profit margin. If your cost per order is higher, the ad eats the whole profit of the order.

Is the result guaranteed?

No. It is a planning estimate based on your numbers; the real outcome depends on competition, season, ad quality and the landing page.

How much should I spend per day?

The tool divides the budget across the campaign days. For good learning on platforms such as Meta, avoid a daily budget that is very small relative to your target cost per order.

Related tools

ROAS CalculatorCAC & LTV CalculatorUTM Link BuilderAll tools →

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