Ad Budget Planner
Work backwards from a revenue goal: this planner tells you the monthly and daily ad budget, orders needed and the maximum CPA allowed at your target ROAS.
How to set an advertising budget
Budget = target revenue ÷ target ROAS. Orders needed = target revenue ÷ AOV. Max CPA = budget ÷ orders. If the max CPA is below what you actually pay, the goal needs a better offer or more time.
How to use the ad budget calculator (formula)
What each field means
- Target monthly revenue — Revenue goal for the month.
- Target ROAS — ROAS you expect or need.
- Average order value — Average order value.
Worked example
Using these numbers: target monthly revenue $30,000, target roas 3, average order value $50.00.
The monthly ad budget is $10,000.
- Daily budget: $333.33
- Orders needed: 600
- Max CPA allowed: $16.67
How much should an ecommerce business spend on ads?
Many online stores spend 10–30% of revenue on ads. Newer brands growing fast often spend more; established brands with repeat customers spend less.
Tips to improve your result
- Start from a ROAS you have actually achieved.
- Scale budgets gradually, 20–30% at a time.
- Keep 10–20% of budget for testing new creatives.
- Check daily budget against platform learning needs.
Frequently asked questions
How do I calculate an ad budget?
Divide your revenue target by your target ROAS.
How much should I spend on Facebook ads per day?
Monthly budget ÷ 30; make sure each ad set gets enough to exit the learning phase.
Should budget be based on ROAS or CPA?
Use ROAS for revenue goals and CPA for order or lead goals — this planner shows both.
What if the required budget is too high?
Raise AOV, improve conversion rate or extend the timeline.
You might also need
ROAS CalculatorReturn on ad spend from revenue and spend.
Want help improving these numbers?
Book a free consultation and I'll review your store and ads.