SellersCalc

Ad math

Ad Budget Calculator

Start with the revenue you want and the efficiency you can realistically buy — the budget is just the division.

Required ad budget = revenue goal ÷ target ROAS. To drive $30,000 of monthly paid revenue at a realistic 4× ROAS, you need a $7,500 ad budget — and at a $60 average order value that is 500 orders the funnel must produce. Working the math this direction exposes fantasy plans early: a $2,000 budget cannot produce $30,000 at 4×, no matter how good the creative. Enter goal, ROAS, and AOV to get the budget and the order volume it implies, then sanity-check both against history.

Ad Budget Calculator — your numbers

Required ad budget

$7,500.00

Expected orders

500

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

Scaling DTC store

Monthly revenue goal $30,000.00
Target ROAS 4
Average order value $60.00
Required ad budget $7,500.00
Expected orders 500

$7,500 of monthly spend and 500 orders — check fulfillment can absorb that.

Higher AOV, tougher ROAS

Monthly revenue goal $50,000.00
Target ROAS 2.5
Average order value $80.00
Required ad budget $20,000.00
Expected orders 625

A $20,000 budget at 2.5× — realistic efficiency assumptions double the bill.

Frequently asked questions

What target ROAS should I plug in?

Your trailing 60–90 day blended ROAS, not your best week and not a competitor's screenshot. If you have no history, budget conservatively at 2–3× for cold traffic and revise monthly. The most common planning failure is assuming scale improves efficiency — ROAS usually degrades as budgets grow, because the cheapest customers get bought first.

Does ROAS stay constant as I increase spend?

Almost never. Auction platforms serve your ads to the likeliest buyers first, so each additional dollar chases slightly worse prospects — marginal ROAS falls below average ROAS as spend scales. A store at 5× on $3,000/month might blend to 3.5× at $15,000. Plan big budget jumps in 20–30% steps and re-measure, rather than trusting one straight-line projection.

How should I split this ad budget across platforms?

Weight it by marginal performance, not evenly. A common starting split for US e-commerce is 60–70% to the proven workhorse (usually Meta or Google Shopping), 20–30% to the number two, and 10% to testing new channels. Re-allocate monthly toward whichever platform holds ROAS at increased spend — that is the one with headroom.

Should the revenue goal include organic sales?

No — this calculator sizes the budget for paid-attributed revenue only. If your total goal is $50,000 and organic reliably delivers $20,000, the paid goal is the $30,000 gap. Blending organic into the goal quietly assumes ads deserve credit for sales that would arrive anyway, and produces a budget bigger than the job requires.

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Part of the Advertising & ROAS collection.