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Free Ad Budget Calculator

Enter your revenue target and business details — get your recommended monthly ad budget, platform split, estimated conversions, and break-even ROAS in seconds.

Your Goals
$
Your monthly revenue goal from paid ads
$
Average revenue per sale or customer
%
% of ad clicks that convert to sales
Used for industry benchmark comparison

Ad Platforms
Your Ad Budget Plan
Recommended Monthly Ad Budget
/month across all platforms
% of Revenue Target
Target CPA
Break-even ROAS
Budget Allocation by Platform
Est. Monthly Clicks
across all platforms
Est. Conversions
at your CVR
Est. Impressions
monthly reach
Industry Benchmark Comparison
How your budget compares to typical ad spend in your industry
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How to Set Your Ad Budget

There's no universal number — the right ad budget depends on your revenue target, margins, industry, and stage of business. But most frameworks start with the same question: what percentage of target revenue are you willing to invest in acquisition?

The most practical approach: work backwards from your revenue goal.

Budget = (Revenue Target × Ad Spend %)
Conversions Needed = Revenue Target ÷ Average Order Value
Max CPA = AOV × (1 − COGS%)
Budget = Conversions Needed × Max CPA

Both methods should produce similar numbers. If they diverge significantly, your industry benchmark or conversion rate assumptions need revisiting.

Start lean, then scale. Begin with 50–60% of your calculated budget, validate performance for 30–60 days, then increase spend on what works. The biggest mistake is over-investing before you know your break-even CPA.

Ad Budget by Industry

Industry benchmarks aren't rules — they're reference points. Higher-margin businesses can afford to spend more on acquisition. Lower-margin or high-repeat-purchase businesses often need tighter CPA targets.

Industry Typical Ad Spend Best Platforms Avg. CPA Range
eCommerce / DTC 10–15% of revenue Facebook, Google Shopping, TikTok $15–$60
SaaS / Software 10–20% of MRR target Google Search, LinkedIn $30–$150
Local Services 5–10% of revenue Google Local, Facebook $20–$80
Lead Generation 8–15% of revenue Google, Facebook Lead Ads $10–$50 per lead
Agency / B2B Services 5–12% of revenue LinkedIn, Google $50–$300 per lead
Mobile App 15–25% of LTV target TikTok, Facebook, Google UAC $1–$5 per install

Note: These percentages are based on publicly available industry benchmarks from platforms like WordStream, HubSpot, and Meta's advertiser data. Your actual numbers will vary based on margins, competition intensity, and targeting quality.

How to Allocate Budget Across Platforms

Once you have a total budget, the question is how to split it. Platform allocation should follow intent level and audience match — not which platform you're most comfortable with.

01

Start with Google for high-intent

People searching for your product are already motivated to buy. Google Search captures existing demand and typically delivers the strongest initial ROAS. Allocate 40–50% here first.

02

Use Facebook / Instagram to create demand

Meta's platforms reach people who don't know they want your product yet. Best for discovery, retargeting, and lookalike audiences. Allocate 30–45% depending on your funnel.

03

Test TikTok at 10–20% of budget

TikTok CPMs are still relatively low compared to Meta. Best for sub-30 audiences, impulse-buy products, and brands with strong creative. Start small, scale if ROAS holds.

04

Rebalance monthly based on ROAS

The allocation that works in month 1 won't be optimal in month 6. Review platform ROAS every 30 days and shift budget toward winners. Never keep failing platforms on life support.

Frequently Asked Questions

How much should I spend on advertising? +
Most businesses spend 5–15% of revenue on advertising, with growth-stage companies spending 15–25%. The right number is calculated from your revenue target, average order value, conversion rate, and target CPA. Use this calculator to get a number based on your specific business — a blanket percentage without context is rarely actionable.
What is cost per acquisition (CPA) and how do I calculate it? +
Cost per acquisition (CPA) is how much you spend to acquire one customer. Formula: CPA = Total Ad Spend ÷ Number of Conversions. Your target CPA must be below your profit margin per customer to be profitable. If your AOV is $100 and your COGS is 40%, your maximum CPA is $60. A good CPA target is usually 20–40% below your maximum to leave room for variance.
How do I split ad budget across Facebook, Google, and TikTok? +
A common starting allocation for eCommerce: 45% Facebook/Instagram, 40% Google, 15% TikTok. SaaS and B2B lean more on Google (50–60%) since search intent is stronger. Local businesses often get the best ROI from Google Local (60%+). These are starting points — rebalance every 30 days based on actual ROAS per platform.
What is break-even ROAS and how does it affect my budget? +
Break-even ROAS is the minimum return on ad spend needed to cover your ad costs and cost of goods. Formula: Break-even ROAS = Revenue ÷ (Revenue - COGS). For example, if your product sells for $100 and COGS is $40, break-even ROAS = $100 ÷ $60 = 1.67x. Any campaign delivering below that ROAS is losing money. Most brands target 2–3x their break-even ROAS to ensure real profit after overhead.
How long does it take to see results from a new ad budget? +
Expect 2–4 weeks of learning phase on Facebook and TikTok before campaigns stabilize. Google Search typically shows signal faster (1–2 weeks). Don't make major budget decisions in the first 7 days — platforms need enough data (50–100 conversions per ad set) to optimize. Evaluate performance at the 30-day mark with statistical significance before scaling or cutting.
Should I start with a small ad budget and scale up? +
Yes — but not too small. Facebook and Google's algorithms need at minimum $30–$50/day per ad set to get out of the learning phase. Starting with $10/day starves the algorithm and produces unreliable data. A practical minimum: $50–$100/day total budget with 2–3 ad sets at $15–$30/day each. Validate at this level for 30 days, then scale winning ad sets by 20–30% per week.