# Ad budget calculator

> Free ad budget calculator. Turn a revenue goal and target ROAS into a monthly and daily budget, then check if your CPM, CTR and conversion rate can reach it.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/ad-budget-calculator

Start from the revenue you want, get the ad budget it takes, then check whether your CPM, click rate and conversion rate can actually deliver it.

## What it calculates

Dividing a revenue goal by target ROAS gives a budget. That budget only works if your funnel can turn it into orders. The calculator runs the budget through your real funnel (impressions, clicks, orders, revenue) and shows how much of the goal it reaches. When the two disagree, your target ROAS is not reachable with today's numbers.

## Formula

```
Budget = Revenue goal ÷ target ROAS
Daily budget = Budget ÷ 30.4
Clicks = Budget ÷ CPM × 1,000 × CTR
Orders = Clicks × conversion rate
Funnel revenue = Orders × AOV
```

## Worked example

Inputs:
- Revenue goal per month: USD 60,000
- Target ROAS: 3
- CPM: USD 12
- Click-through rate: 1.2%
- Conversion rate: 2%
- Average order value: USD 60

Results:
- Monthly ad budget: USD 20,000
- Daily budget: USD 658
- Revenue your funnel delivers: USD 24,000
- Share of goal reached: 40%
- Orders: 400
- Cost per order: USD 50
- Clicks: 20,000

## What changes the result

Conversion rate at five values; every other input as in the example.

| Conversion rate | Revenue your funnel delivers | Share of goal reached |
| --- | --- | --- |
| 1% | USD 12,000 | 20% |
| 1.5% | USD 18,000 | 30% |
| 2% (example) | USD 24,000 | 40% |
| 2.5% | USD 30,000 | 50% |
| 3% | USD 36,000 | 60% |

## How to read the result

If the goal reached is under 100%, either the ROAS target is too high for your funnel or one of CPM, CTR, conversion rate or AOV needs to improve.
The daily budget uses 30.4 days, the average month.
Plan spend in steps. Platforms rarely hold the same CPM when a budget jumps overnight.

## Questions

**How much should I spend on ads?**
Start from a revenue goal and the ROAS your margin needs. Budget = goal ÷ target ROAS. Then check your funnel can deliver that ROAS.

**Why doesn't my funnel reach the goal?**
At your CPM, CTR, conversion rate and AOV, the budget buys fewer orders than the target ROAS assumes. Fix the weakest step or lower the goal.

**How do I turn a monthly budget into a daily one?**
Divide by 30.4, the average number of days in a month.

**Do you store what I enter?**
No. The calculation runs in your browser and nothing is sent to Analify.

## Use your real numbers

Analify reads CPM, CTR and spend from Meta, TikTok and Google, conversion rate from your analytics, and AOV from Shopify, so the funnel numbers come from your own account. Analify reads 4 of these 6 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/ad-budget-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools