Ad Budget Calculator: Plan Spend from a Sales Target

The calculator works backwards from your target. Orders needed are the sales target divided by average order value. Clicks needed are orders divided by your conversion rate. The budget is clicks times your cost per click, and the daily budget is that divided by 30. Orders and clicks are rounded up to whole numbers.

Say you want ₹5,00,000 in sales a month, your average order is ₹1,000, 2% of visitors buy and a click costs ₹8. You need 500 orders. 500 divided by 2% is 25,000 clicks, and 25,000 clicks at ₹8 is ₹2,00,000, or about ₹6,667 a day. Each order costs ₹400 in ads, and ROAS comes out at 2.5x.

In dollars, 200 orders at a 2.5% conversion rate and a $1.20 CPC need 8,000 clicks and a $9,600 monthly budget.

A budget plan is only useful if the cost per order it implies is below your break even cost per purchase. In the example, ₹400 per order works only if an order leaves you more than ₹400 after product cost, GST, shipping, fees and returns.

Compare the expected ROAS with your break even ROAS too. If the plan comes out below it, more spend means more loss, so work on the rates before you raise the budget.

Each rate in the plan changes the answer in a predictable way:

Ad platforms run on daily or lifetime budgets, so the calculator divides the monthly figure by 30. Split it across campaigns by their job, such as finding new customers or reminding recent visitors, and move money towards whichever brings orders at the lowest cost.

Plan for COD and RTO. If some COD orders are refused, Ads Manager still counts them as purchases, so fewer orders arrive than the plan shows. Divide your target by the share of orders that get delivered: for 300 delivered orders at a 10% RTO rate, plan for 334.