PPC Budget Calculator

Pay-Per-Click (PPC) budget planning determines how much you need to spend on paid search or social ads to hit a target number of leads or sales.

The core formulas:

Required Budget = Target Clicks × Cost Per Click (CPC)

Target Clicks = Target Conversions / Conversion Rate

Cost Per Acquisition (CPA) = Budget / Conversions

Return on Ad Spend (ROAS) = Revenue / Ad Spend

What each variable means:

• Target Conversions — the number of leads, sales, or sign-ups you want each month
• Conversion Rate — percentage of clicks that become conversions (industry average: 2–5%)
• CPC — average cost per click in your niche (varies from $0.50 for broad topics to $50+ for legal/finance)
• CPA — how much you pay per conversion; must be lower than your profit per sale

Worked example: You want 100 sales per month. Your landing page converts at 4%. Your average CPC is $1.80.

Target clicks = 100 / 0.04 = 2,500 clicks Required budget = 2,500 × $1.80 = $4,500/month CPA = $4,500 / 100 = $45 per sale

If your product sells for $120 with a $60 margin, your CPA of $45 leaves a $15 profit per sale.

Typical CPC ranges by industry:

• E-commerce: $0.50–$2.00
• Software/SaaS: $3.00–$10.00
• Legal services: $15–$50+
• Finance/insurance: $10–$30

Always set a daily budget cap to avoid runaway spend, and monitor Quality Score to lower CPC over time.