Start with the number of sales you want each month and work backwards. Type your expected cost per click, the share of visitors who leave their details, and the share of those leads who buy, and the calculator shows the clicks you need, the monthly and daily budget, what a lead and a sale will cost, and whether the spend pays for itself.
Most people set an ad budget first and hope for sales. Working from the sale is more honest, because it shows what each step of the funnel has to deliver. Sales come from leads, leads come from visitors, and visitors cost a price per click. Each step has a rate, and the budget is just the product of all of them.
That chain also shows where a small change matters. A page that converts at 4 percent instead of 2 percent needs half the clicks, so it also needs half the budget for the same sales. The same is true for the lead-to-sale rate: faster follow-up, a clearer quote or a better offer cut the clicks you have to buy.
The number to compare is the cost per sale against what a sale is worth. If you pay $200 to win a customer who spends $300 once, the profit shown is real but modest. If the customer comes back, the lifetime value is higher and you can afford a higher cost per sale. If the margin on that $300 is only 40 percent, the real profit is smaller than the revenue figure suggests.
Treat the profit line as revenue minus ad spend, not as net profit. It leaves out your costs of delivering the product, your time and any fees. When the line is close to zero, the campaign is working as an expensive way to get known; when it is negative, the clicks cost more than the sales are worth at your current rates.
Divide the sales you want by the share of leads who buy to get the leads you need. Divide the leads by your conversion rate to get the clicks, then multiply the clicks by your cost per click. For example, 10 sales at a 25% lead-to-sale rate need 40 leads; at a 4% conversion rate that is 1,000 clicks; at $2 a click the budget is $2,000 a month.
The monthly budget divided by 30.4, the average number of days in a month. A $2,000 monthly budget is about $65.79 a day. Ad platforms often let a day run over its limit a little and balance it across the month.
Cost per lead is the budget divided by the leads (people who filled in a form or called). Cost per sale is the budget divided by the sales. With 40 leads, 10 sales and a $2,000 budget, a lead costs $50 and a sale costs $200.
Use your own number if you have one. If you do not, try a cautious figure such as 2 to 3 percent for a new page and see how sensitive the result is. The rate depends heavily on the offer, the price and the page, so there is no single right value.
No. It is an estimate based only on the numbers you type, and real campaigns change as bids, competitors and seasons change. It is not financial advice.
Related: ROAS calculator, ROI calculator, CPM calculator.
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