Ad Budget Calculator:
Meta & Google Ads Budget by Target ROAS

Enter your target revenue, AOV, conversion rate and target ROAS — instantly calculate required ad budget, CPO and 3 different scenarios.

✓3 ROAS Scenarios
✓CPO & CPC Calculation
✓Instant Results
✓Free Tool

Ad Budget Calculator

Enter your target revenue and key metrics — instantly calculate required ad budget and 3 ROAS scenarios.

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Required Ad Budget
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Monthly

ROAS Scenarios

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How to Determine Ad Budget?

The most reliable method for determining ad budget is ROAS-based calculation. The basic formula is simple: divide your target revenue by your target ROAS to find the required ad budget. For example, if you target ₺500,000 monthly revenue with 4x ROAS, you need ₺125,000 in ad spend.

Key Formulas

MetricFormula
Ad BudgetTarget Revenue ÷ Target ROAS
ROASRevenue ÷ Ad Spend
OrdersTarget Revenue ÷ AOV
Required VisitorsOrders ÷ Conversion Rate
CPOAd Budget ÷ Orders
Ad Share(Ad Budget ÷ Revenue) × 100

Platform Comparison

PlatformAvg. CVRStrength
Google Search Ads%3–5High purchase intent, warm traffic
Meta Ads (FB/IG)%1–2Wide audience reach, visual discovery
Google Shopping%2–4Product-level display, high intent
Remarketing%5–10Most efficient reach to existing visitors

Frequently Asked Questions

How to determine ad budget?+
The most common method is ROAS-based: Ad Budget = Target Revenue / Target ROAS. For example, if you target $50,000/month revenue with 4x ROAS, the budget is $12,500. If you're just starting with no data, allocating 15% of your revenue to ads is a reasonable starting point.
What is the difference between ROAS and ROI?+
ROAS is based solely on ad spend: Revenue / Ad Spend. ROI considers all costs including product cost, shipping, and operating expenses to measure true profitability. High ROAS doesn't guarantee profitability - if your product margins are low, you can lose money even with 4x ROAS.
What should the ad share be?+
In e-commerce: 10-20% is efficient, 20-40% is normal/growth phase, 40%+ is unsustainable risk zone. New stores may reach 30-40%; mature stores should aim to get down to 10-15%.
How does conversion rate affect ad budget?+
Increasing conversion rate from 1% to 2% means half the budget is enough for the same number of orders. Focusing on on-site conversion optimization before increasing ad spend is usually much more profitable.
What is CPO and how to reduce it?+
CPO = Ad Budget / Number of Orders. It should not exceed 20-40% of AOV. To reduce it: increase conversion rate, improve targeting, boost AOV (upsell/cross-sell).

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