Ad Budget Calculator
Work backwards from the revenue you want to the ad budget that goal implies.
Calculator
Enter your values and the result updates instantly.
Result
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What is an ad budget?
An ad budget is the total amount you commit to running ads over a given period. You can set that figure from a goal rather than a guess: once you know the revenue you want and the efficiency you expect to produce it at, the required spend follows directly from those two.
It moves budgeting away from "whatever we spent last month" and makes it obvious why the budget has to change when the goal does.
How it is calculated
Ad Budget = Target Revenue ÷ Target ROAS
Enter the ad revenue you are targeting for the period and the ROAS you expect to produce it at. The result is the spend that goal requires.
The ROAS figure you choose determines everything. A realistic ratio grounded in your own past performance yields a realistic budget; an optimistic one yields a budget too small to ever reach the goal.
How to read the result
The amount you get is a floor the goal requires, not a ceiling. If your available budget sits below it, either the goal or the efficiency you expect needs revisiting.
You do not have to spread the budget evenly across the period, but the total still has to arrive. Delaying spend means a higher daily pace in the time that remains.
Frequently asked questions
Where should the target ROAS come from?
Your own historical performance is the most reliable source. Without history, start with a cautious figure above your break-even threshold and update it as real data arrives.
Does this budget cover all marketing costs?
No. The result is media spend only. Agency fees, creative production and tool subscriptions need to be planned separately.
How should I split the budget across channels?
Once you have the total, allocate by each channel’s own past efficiency. Because channels differ in ROAS, splitting evenly usually lowers total efficiency.