Ad budget funnel calculator
Clicks, orders, revenue and ROAS from a budget and a conversion rate.
Fill in the fields and the result will appear here automatically.
This forecast turns an advertising budget into expected clicks, orders and revenue using a supplied click price, conversion probability and average order value. Fractional clicks and orders are expected averages rather than promised purchases. ROAS compares revenue with advertising cost; profitability also needs product costs and margin. The model keeps CPC and conversion constant across the budget and does not model auctions, returns or repeat purchases.
How it works
Formula and logic
Clicks = budget ÷ cost per click. Orders = clicks × conversion ÷ 100. Revenue = orders × average order value, and ROAS is revenue ÷ budget. Cost per order = CPC ÷ (conversion/100), only for positive conversion. At 0%, orders and revenue are zero and cost per order is omitted. Each click produces at most one order in this model, so conversion is limited to 0–100%.
Example
A budget of 150,000 at 24 per click with 2.4% conversion and a 4,900 order value returns 735,000 — a ROAS of 4.9. With the same click price and 0% conversion, orders and revenue are 0 and cost per order is omitted.
Fields and units
- Advertising budget — $
- Cost per click — $
- Conversion rate — %
- Average order value — $
How to use
- — Enter the budget you plan to spend.
- — Enter the cost per click you expect from the auction.
- — Enter the conversion rate from click to order.
- — Enter the average order value for the products advertised.
- — Check contribution margin separately: ROAS 1 does not cover product costs by itself. Use one chosen currency for every amount; no exchange occurs.
Method and limitations
- Calculation method
- Formula and logic
- Data or methodology source
- Google Ads: average CPC as cost per click, distinct from a maximum bid Google Ads: conversion rate; several actions per click differ from one-order probability
- Limitation
- Constant CPC and order probability; revenue forecast before unentered costs, without a universal profitability threshold.
FAQ
Which input should I be most careful with?
The conversion rate. It multiplies through the whole chain, and a guess of 3% against a real 1.5% halves the revenue while looking like a small difference on the page.
What ROAS is good enough?
The threshold depends on contribution margin before ads. With 30% of revenue available to cover advertising, covering ads alone needs ROAS = 1/0.30 = 3.3333… . Other costs can raise the threshold; ROAS 1 does not establish break-even.
Does the revenue include returns?
Returns are not modelled separately. Use an order value and completed-order conversion on a consistent basis, or account for returns separately. There is no universal 20% revenue adjustment.
Why show the cost per order separately?
Because it compares directly with the average order value and with your margin. If an order costs more to acquire than it earns, the funnel is broken regardless of how the totals look.