Ad Budget Calculator

Work backwards from a revenue target through orders and sessions to the ad budget you actually need.

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Your numbers

Monthly revenue target for paid traffic specifically.

$
$
%
$

Your result · updates as you type

Ad budget needed

$17,143

To bring in $40,000, you need about 571 orders from 19,048 sessions, at a $30.00 cost per order.

Orders needed
571
Sessions (clicks) needed
19,048
Cost per order (CPA)
$30.00

Conversion rate moves this budget more than any other input. A CRO fix that lifts conversion rate cuts the budget needed by the same share.

Budget needed at other conversion rates
1.5%
$34,286
2.3%
$22,857
3%
$17,143
4.5%
$11,429
6%
$8,571

Breakdown

Revenue target
$40,000
÷ order value
571 orders
÷ conversion rate
19,048 sessions
× cost per click
$17,143
Implied ROAS at this budget
2.33x

Working backwards from revenue to budget

Most budgeting starts with a number you can afford to spend. This one starts from the revenue you want and works back through orders and sessions to the budget that gets you there, so you can see whether the target is realistic before you commit spend.

Orders needed = revenue target ÷ order value Sessions needed = orders ÷ conversion rate Budget needed = sessions × cost per click

Example: the default numbers

Revenue target
$40,000
Order value
$70
Conversion rate
3%
Cost per click
$0.90

Orders needed: 40,000 ÷ 70 = 571. Sessions needed: 571 ÷ 0.03 = 19,048. Budget needed: 19,048 × 0.90 = $17,143, a cost per order of $30.00.

What moves the budget most

Conversion rate has more leverage than any other input here: doubling it halves the budget needed for the same revenue target. Before assuming you need a bigger budget, check whether a faster page, clearer product photos or a simpler checkout would move conversion rate instead.

Check the resulting cost per order against your margin with the break-even ROAS calculator before locking in the budget.

Questions people ask

How do I set an ad budget for a revenue goal?

Divide the revenue target by your order value to get orders needed, divide that by conversion rate to get sessions needed, then multiply by cost per click.

What if the budget looks too high?

Check the ratio of budget to revenue target. If it's very high, the conversion rate or cost per click needs to improve before that revenue target is realistic from ads alone.

Does this include organic or email revenue?

No, this is for paid traffic specifically. Set the revenue target to the share of revenue you want ads to bring in, not total store revenue.

How is this different from the CPM calculator?

The CPM calculator works from historical spend and results to show your metrics. This one works forward from a goal to a budget you haven't spent yet.

Want this builtinto your store?

I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.

Emmanuel Asika

Emmanuel Asika

Shopify & WooCommerce developer, Dublin

I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.

hello@emmanuelasika.com

Last reviewed 30 September 2026.