Ad budget planner
Enter your sales target, the ROAS you expect and your average order, and see the budget and orders it takes.
Change the numbers and the result updates at once.
What does the result mean?
The budget here is an estimate from the ROAS you enter. Compare the cost per order with the most your margin allows.
If the cost per order is above what your margin allows
The target loses money at this ROAS. Raise the average order, improve conversion, or lower the target.
If it is below
The plan profits on paper. Start with part of the budget and confirm the real ROAS before spending all of it.
How is it calculated?
Budget = sales target ÷ ROAS. Orders = target ÷ average order. Cost per order = budget ÷ orders.
A target of 100,000 a month, an expected ROAS of 4x and an average order of 500:
100,000 ÷ 4 = 25,000
You need 200 orders, at an ad cost of 125 each.
Questions
Where do I get the expected ROAS?
From the average of your last three months, not your best campaign. If you are starting out, begin with a cautious number and adjust after two weeks.
Does ROAS hold as the budget grows?
Usually not. A bigger budget reaches a less interested audience, so ROAS falls. Raise it gradually and watch the number.
How do I know the cost per order is acceptable?
Compare it with the highest cost per order from the ad profit calculator. As long as it is below, the order makes money.
Related tools
Ad profit calculator
The lowest ad return that keeps you from losing, and the most an order may cost.
Conversion rate impact calculator
What you gain each month by raising your conversion rate.
MER calculator
Your revenue against all your marketing spend, and where you stand.
The next step.
The result is a starting point. In the Growth Audit we compare it with your store's and campaigns' real numbers.