How to calculate your PPC budget
Work backward from the leads or sales you want, not a number you guessed at.
The simple formula
Budget ≈ target leads × cost per lead. If you don’t know your cost per lead yet, estimate it: cost per click ÷ conversion rate. A $3 click at a 5% conversion rate is a $60 cost per lead. Then multiply by the number of leads you want.
Check that it’s profitable
A budget only makes sense if the leads turn into profitable customers. Factor in your close rate and average customer value to see the return. Our PPC ROI & ROAS calculator does this instantly: enter a budget, cost per click, conversion rate, close rate, and customer value, and it estimates your clicks, leads, sales, revenue, and ROI.
Related questions
What’s a good starting PPC budget?
Enough to gather meaningful data in your market, often a few thousand dollars a month, but it varies widely by industry and competition.
How do I lower my cost per lead?
Improve targeting, ad relevance, and landing-page conversion so more of your clicks become leads.
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